Based on the provided data, I'll analyze whether EW is overvalued through multiple valuation metrics and recent developments.
Valuation Analysis:
Edwards Lifesciences' valuation metrics have significantly decreased in Q3 2024, with P/E dropping to 25.4x from 41.1x in Q1, and EV/EBITDA declining to 19.1x from 30.0x, suggesting improved valuation levels.
Recent Developments:
The company recently sold its critical care division to Becton Dickinson for $4.2B in September 2024, which has impacted its valuation metrics and business focus.
Analyst Sentiment:
Recent analyst actions show mixed views, with Wolfe Research downgrading to Sell with a $60 target due to concerns about TAVR mortality data, while B of A Securities upgraded to Strong Buy with a $90 target.
Growth Metrics:
The company maintains strong profitability with gross margins above 80% and healthy net margins around 26%, indicating efficient operations despite recent business restructuring.
Conclusion:
At current levels, EW is not overvalued considering its industry position, strong margins, and recent strategic divestiture. The significant reduction in valuation multiples from early 2024 suggests a more reasonable valuation.