Edwards Lifesciences Corp ($EW) Possible Buy to $119 Confident Investor Rating: Good

Company name Edwards Lifesciences Corp
Stock ticker EW
Live stock price [stckqut]EW[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Fair
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $142.39
Target stock price (averages with growth) $147.75
Target stock price (averages with no growth) $72.25
Target stock price (manual assumptions) $142.02

The following company description is from Google Finance: http://www.google.com/finance?q=ew

Edwards Lifesciences Corporation is a manufacturer of heart valve systems and repair products used to replace or repair a patient’s diseased or defective heart valve. The Company is engaged in patient-focused innovations for structural heart disease and critical care monitoring. Its segments include United States, Europe, Japan and Rest of World. Its products are categorized into three areas: Transcatheter Heart Valve Therapy, Surgical Heart Valve Therapy and Critical Care. It also develops hemodynamic monitoring systems that are used to measure a patient’s cardiovascular function in the hospital setting. It is developing products, such as the Edwards SAPIEN 3 Ultra System and Edwards SAPIEN XT transcatheter heart valve, among others. Its Transcatheter Heart Valve Therapy and Surgical Heart Valve Therapy products are manufactured in the United States, Singapore and Switzerland. Critical Care products are manufactured in its facilities located in Puerto Rico and the Dominican Republic.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Edwards Lifesciences Corp.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Edwards Lifesciences Corp calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $109.31
  • Growth: 0.16
  • Current EPS (TTM): $3.3
  • P/E: 33
  • Future EPS Calc: $6.93
  • Future Stock Price Calc: $228.72
  • Target stock price: $142.02

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I hope that this makes you a Confident Investor.

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