Edwards Lifesciences Corporation provides products and technologies for structural heart disease, and critical care and surgical monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of heart valves; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases. The company also provides the PASCAL and Cardioband transcatheter valve repair systems for minimally-invasive therapy. In addition, it offers surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; KONECT RESILIA, a pre-assembled aortic tissue valved conduit for patients who require replacement of the valve, root, and ascending aorta; and HARPOON Beating Heart Mitral Valve Repair System for patients with degenerative mitral regurgitation. Further, the company provides critical care solutions, including advanced hemodynamic monitoring systems to measure a patient's heart function and fluid status in surgical and intensive care settings; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.

BUILD UP FREE CASH	2022-12-31 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	4,464	5,010	5,439.5	6,030.6	6,617.9	7,274.9	7,274.9	7,274.9
Revenue % Chg.	-14.7%	12.2%	8.6%
EBIT	1,541.8	1,487.4	1,480.7	1,660.3	1,862.8	2,092.4	2,092.4	2,092.4
EBIT Margin	34.5%	29.7%	27.2%
Tax Rate	12.9%	11.1%	9.8%
NOPAT	1,343.4	1,322.2	1,335.2	1,385.5	1,551.8	1,747	1,747	1,747
NOPAT Margin	30.1%	26.4%	24.5%	23%	23.4%	24%	24%	24%
D&A	139.6	144.9	155.2	155.9	164.4	175.5	175.5	175.5
D&A / Revenue	3.1%	2.9%	2.9%
Capex	-244.6	-253	-252.4	-266	-286.3	-293.2	-293.2	-293.2
Capex / Revenue	-5.5%	-5%	-4.6%
Chg. NWC	-421.4	-526.3	-259.3	-496.8	-545.1	-599.3	-599.3	-599.3
Chg. NWC / Revenue	-9.4%	-10.5%	-4.8%
Unlevered FCF (UFCF)	817	687.8	978.7	778.6	884.9	1,030	1,030	1,030
UFCF % Chg.	-39.7%	-15.8%	42.3%	-20.4%	13.6%	16.4%	—	—
PV of UFCF	—	—	—	717.1	750.6	804.7	741.2	682.6
Sum of PV of UFCF	—	—	—	717.1	1,467.7	2,272.4	3,013.6	3,696.2

Cost of Debt
Tax Rate
After Tax Cost of Debt	2.5%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	8.7%
Total Debt	700
Market Cap	49,778.1
Total Capital	50,478.1
Debt Weighting	1.4%
Equity Weighting	98.6%
WACC	8.6%

Exit Multiple EV/FCF
Terminal Value	46,630.3
PV of Terminal Value	28,463.4
Cumulative PV of UFCF	3,696.2
Net Debt	-3,147.8
Equity Value	35,307.5
Shares Outstanding	580.3
Implied Share Price	60.8
Current Share Price	85.8
Implied Upside / (Downside)	-29.1%