Edwards Lifesciences Corporation (EW) DCF Valuation
Why we don't show a single “fair value” for EW
Even the optimistic scenario of a conservative trailing-FCF model ($44.29) sits far below today's price — the market is paying for growth and durability beyond what this model structure captures. The honest lens is the question below: what growth does today's price actually require? The model scenarios are listed further down for reference.
What would today's price require?
$90.78 is justified only if free cash flow grows about +35.6% a year (fading to 2.5% long-run) at a 8.5% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 4.9%/yr | 9.5% | $26.26 |
| Base case | 7.9%/yr | 8.5% | $33.47 |
| Optimistic | 10.9%/yr | 7.5% | $44.29 |
| Analyst DCF (FMP) | independent reference — different model | $64.15 | |
Current Price
$90.78
Market-Implied Growth
+35.6%/yr
vs +8.7% 5Y actual
Base-Case Model Value
$33.47
model output — not a price target
EW DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for EW (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $791.5M · 0.58B shares · net cash $2.3B
Estimated Fair Value
$39.57
-56.4% vs $90.78
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 7.9%/yr FCF growth and 10-year horizon fixed. Green = above today's $90.78; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.5% | $50.60 | $54.30 | $58.94 | $64.89 | $72.84 |
| 7.5% | $42.18 | $44.51 | $47.30 | $50.70 | $54.96 |
| 8.5% | $36.21 | $37.76 | $39.57 | $41.71 | $44.27 |
| 9.5% | $31.76 | $32.84 | $34.08 | $35.51 | $37.17 |
| 10.5% | $28.33 | $29.11 | $29.99 | $30.99 | $32.13 |
About Edwards Lifesciences Corporation
Edwards Lifesciences Corporation is a global medical technology firm specializing in sophisticated products and technologies for structural heart conditions, alongside critical care and surgical patient monitoring. With operations spanning the United States, Europe, Japan, and various international territories, the company offers a comprehensive suite of solutions. Their structural heart disease portfolio encompasses transcatheter heart valve replacement systems designed for minimally invasive procedures, as well as transcatheter repair and replacement options specifically targeting mitral and tricuspid valve pathologies, exemplified by their PASCAL and Cardioband systems. Additionally, they provide advanced surgical structural heart solutions, including the INSPIRIS aortic surgical valve, the KONECT RESILIA pre-assembled aortic tissue valved conduit for complex valve, root, and ascending aorta replacements, and the HARPOON Beating Heart Mitral Valve Repair System for patients suffering from degenerative mitral regurgitation. In the realm of critical care, Edwards supplies advanced hemodynamic monitoring systems that assess patients' cardiac function and fluid status in both surgical and intensive care environments. This offering also features the Acumen Hypotension Prediction Index software, which provides early alerts to clinicians regarding potential dangerously low blood pressure. The company distributes its products to healthcare providers through a combination of its proprietary sales force and independent distributor networks. Founded in 1958, Edwards Lifesciences Corporation maintains its headquarters in Irvine, California.
- Sector
- Healthcare
- Industry
- Medical - Devices
- CEO
- Bernard J. Zovighian