Using the industry peer median P/E multiple (trailing + forward), Edwards Lifesciences Corporation (EW) has a fair value of $59.17 based on 5 comparable companies in the Medical - Devices industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Edwards Lifesciences CorporationEW | 48,340 | 45.1x | 27.8x |
| Becton, Dickinson and CompanyBDX | 57,532 | 27.2x | 12.7x |
| Cardinal Health, Inc.CAH | 49,047 | 32.3x | 20.2x |
| Agilent Technologies, Inc.A | 32,180 | 24.9x | 19.1x |
| DexCom, Inc.DXCM | 25,958 | 31.8x | 26.7x |
| STERIS plcSTE | 22,031 | 36.2x | 26.1x |
| Industry Median | 31.8x | 20.2x | |
| (*) Profit after tax | 1,074 | 1,739 | |
| Equity Value | 34,186 | 35,137 | |
| (/) Outstanding shares | 586 | 586 | |
| Fair Price | $58 | $60 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.