Edwards Lifesciences Net Income vs. Current Valuation
| EWL Stock | EUR 70.08 0.26 0.37% |
For Edwards Lifesciences profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Edwards Lifesciences to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Edwards Lifesciences utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Edwards Lifesciences's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Edwards Lifesciences over time as well as its relative position and ranking within its peers.
Edwards |
Edwards Lifesciences Current Valuation vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Edwards Lifesciences's current stock value. Our valuation model uses many indicators to compare Edwards Lifesciences value to that of its competitors to determine the firm's financial worth. Edwards Lifesciences is one of the top stocks in net income category among its peers. It also is rated as one of the top companies in current valuation category among its peers reporting about 28.57 of Current Valuation per Net Income. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Edwards Lifesciences' earnings, one of the primary drivers of an investment's value.Edwards Current Valuation vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Edwards Lifesciences |
| = | 1.52 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Edwards Lifesciences |
| = | 43.48 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Edwards Current Valuation vs Competition
Edwards Lifesciences is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Medical Devices industry is currently estimated at about 68.25 Billion. Edwards Lifesciences totals roughly 43.48 Billion in current valuation claiming about 64% of all equities under Medical Devices industry.
Edwards Lifesciences Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Edwards Lifesciences, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Edwards Lifesciences will eventually generate negative long term returns. The profitability progress is the general direction of Edwards Lifesciences' change in net profit over the period of time. It can combine multiple indicators of Edwards Lifesciences, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States and internationally. Edwards Lifesciences Corporation was founded in 1999 and is headquartered in Irvine, California. Edwards Lifesciences operates under Medical Devices classification in Germany and is traded on Frankfurt Stock Exchange. It employs 12800 people.
Edwards Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Edwards Lifesciences. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Edwards Lifesciences position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Edwards Lifesciences' important profitability drivers and their relationship over time.
Use Edwards Lifesciences in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Edwards Lifesciences position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Edwards Lifesciences will appreciate offsetting losses from the drop in the long position's value.Edwards Lifesciences Pair Trading
Edwards Lifesciences Pair Trading Analysis
The ability to find closely correlated positions to Edwards Lifesciences could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Edwards Lifesciences when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Edwards Lifesciences - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Edwards Lifesciences to buy it.
The correlation of Edwards Lifesciences is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Edwards Lifesciences moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Edwards Lifesciences moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Edwards Lifesciences can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Edwards Lifesciences position
In addition to having Edwards Lifesciences in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Other Information on Investing in Edwards Stock
To fully project Edwards Lifesciences' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Edwards Lifesciences at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Edwards Lifesciences' income statement, its balance sheet, and the statement of cash flows.