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Edwards Lifesciences Corp (EW) — WACC Analysis

WACC Breakdown

Edwards Lifesciences Corp (EW) has a weighted average cost of capital (WACC) of 8.9%. The cost of equity is 9.0%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 1.6%. The capital structure is 98.9% equity and 1.1% debt.

Interpretation

A WACC of 8.9% is moderate, reflecting the market's balanced risk assessment of Edwards Lifesciences Corp.

Investors can compare EW's WACC of 8.9% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

EW WACC: 8.88% for Edwards Lifesciences Corp

Current inputs imply a 8.96% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Edwards Lifesciences Corp Common Stock (EW) WACC Results
Weighted Average Cost of Capital
8.88%
Cost of Equity
8.96%
Risk-Free Rate4.73%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 98.86%($52.00B)
Debt: 1.14%($598.70M)
Equity Component
8.86%
98.86% × 8.96%
Debt Component
0.02%
1.14% × 1.58%

Edwards Lifesciences Corp (EW) WACC in context

Edwards Lifesciences Corp (EW) currently screens with an estimated WACC of 8.88%. That blends a 8.96% cost of equity, a 2.00% pre-tax cost of debt, and a 98.86% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What EW WACC implies

A 8.88% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates EW

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 98.86% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.