EW
CompareEdwards Lifesciences Corp
Exchange: NYSESector: HealthcareIndustry: Medical Devices
Edwards Lifesciences is the leading global structural heart innovation company, driven by a passion to improve patient lives. Through breakthrough technologies, world-class evidence and partnerships with clinicians and healthcare stakeholders, our employees are inspired by our patient-focused culture to deliver life-changing innovations to those who need them most. Discover more at www.edwards.com and follow us on LinkedIn, Facebook, Instagram and YouTube.
Did you know?
A large-cap company with a $47.3B market cap.
Current Price
$81.53
+2.28%GoodMoat Value
$55.68
31.7% overvaluedProfile
Valuation (TTM)
Market Cap$47.29B
P/E44.05
EV$44.05B
P/B4.57
Shares Out580.00M
P/Sales7.79
Revenue$6.07B
EV/EBITDA29.31
Edwards Lifesciences Corp (EW) Stock Analysis
GoodMoat Analysis
Edwards Lifesciences possesses a strong, durable moat in the structural heart disease market, scoring high on switching costs and technology leadership. However, its current valuation appears unfavourable, trading at a significant premium to the GoodMoat target price and with a high P/E multiple.
Read full analysis
Edwards Lifesciences is a leader in developing and manufacturing medical devices for structural heart disease and critical care monitoring. Applying the GoodMoat framework, the company demonstrates a strong competitive moat. It likely scores highly on criteria such as Switching Costs (its transcatheter heart valves are mission-critical, with high procedural and training costs for switching), Technology Leadership (it is a pioneer and volume leader in transcatheter aortic valve replacement, or TAVR), and potentially Regulatory Barriers (stringent FDA approvals for medical devices). This suggests a Moat Score comfortably above the 5+ threshold required to proceed to valuation analysis. Financially, the company shows solid quality with a 13.3% YoY revenue growth and a healthy operating margin of 18.2%, though its ROE of 10.4% is below the high-quality threshold of 15-20%. The critical issue is valuation. The stock trades at $82.67, which is 49% above the GoodMoat target of $55.68, indicating a negative margin of safety. Its P/E of 44.7 is high, especially for a company not growing at an explosive rate. Following the Decision Framework, while the business likely passes the Moat & Quality Gate, it fails the Valuation & Risk Gate. The price shows no margin of safety and presents an extreme valuation multiple, which is a High Confidence Red Flag. This makes the investment case unfavourable from a value perspective, though the underlying business quality may warrant monitoring for a more attractive entry point. Analysis based on data as of 2024-05-15.
Market Cap$47.29B
Current Price$81.53
P/E Ratio44.05
Forward P/E—
PEG Ratio-0.58
EPS$1.83
Book Value$17.82
P/B Ratio4.57
EW Financial Charts
EW 52-Week Range
$70.46
$87.18
50-Day MA: $81.47200-Day MA: $80.87
Did you know?
Profit margin stands at 17.7%.
Edwards Lifesciences Corp (EW) Financial Summary
Edwards Lifesciences Corp (EW) is a Healthcare company in the Medical Devices industry, listed on NYSE. The stock currently trades at $81.53 with a market capitalization of $47.29B.
Key valuation metrics include a P/E ratio of 44.05, price-to-book ratio of 4.57, and EPS of $1.83. The company reports a profit margin of 17.7% and return on equity of 10.4%.
EW Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $47.29B |
| P/E Ratio | 44.05 |
| EPS | $1.83 |
| P/B Ratio | 4.57 |
| P/S Ratio | 7.79 |
| EV/EBITDA | 29.31 |
| Profit Margin | 17.7% |
| Return on Equity | 10.4% |
| Debt/Equity | 0.07 |
Edwards Lifesciences Corp (EW) Valuation
Based on GoodMoat's DCF model, Edwards Lifesciences Corp has a fair value estimate of $55.68. At the current price of $81.53, the stock appears 46.4% overvalued relative to our intrinsic value estimate.
EW Quality Indicators
Edwards Lifesciences Corp maintains a profit margin of 17.7% and an operating margin of 18.2%. Return on equity stands at 10.4%. The current ratio is 3.72. Debt-to-equity ratio is 0.07.
About Edwards Lifesciences Corp
Edwards Lifesciences is the leading global structural heart innovation company, driven by a passion to improve patient lives. Through breakthrough technologies, world-class evidence and partnerships with clinicians and healthcare stakeholders, our employees are inspired by our patient-focused culture to deliver life-changing innovations to those who need them most. Discover more at www.edwards.com and follow us on LinkedIn, Facebook, Instagram and YouTube.
EW Free Cash Flow
Edwards Lifesciences Corp generated $1.33B in trailing twelve-month free cash flow, representing an FCF yield of 2.82%. This moderate FCF yield indicates reasonable cash generation.
EW Shares Outstanding
Edwards Lifesciences Corp has 0.58 billion shares outstanding at a share price of $81.53, giving it a market capitalization of $47.29B.
EW Recent Insider Trades
Recent insider transactions at Edwards Lifesciences Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| BOBO DONALD E JR (CVP,Strategy/Corp Development) | SELL | 4,676 | $376845.85 |
| Ullem Scott B. (CVP, Chief Financial Officer) | SELL | 5,099 | $430668.17 |
| Lippis Daniel J. (CVP, TAVR) | SELL | 1,019 | $87004.46 |