EW Valuation

Edwards Lifesciences Corp

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78.490

-1.51(-1.887%)1D

Overview
Forecast
Valuation
Earnings

EW Relative Valuation

EW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, EW is overvalued; if below, it's undervalued.

Historical Valuation

Edwards Lifesciences Corp (EW) is now in the Fair zone, suggesting that its current forward PE ratio of 31.45 is considered Fairly compared with the five-year average of 35.45. The fair price of Edwards Lifesciences Corp (EW) is between 74.18 to 102.18 according to relative valuation methord.

Relative Value

Fair Zone

74.18-102.18

Current Price：80.00

Fair

31.45

Trailing

Forward

23.83

EV/EBITDA

Edwards Lifesciences Corp. (EW) has a current EV/EBITDA of 23.83. The 5-year average EV/EBITDA is 27.90. The thresholds are as follows: Strongly Undervalued below 16.81, Undervalued between 16.81 and 22.36, Fairly Valued between 33.44 and 22.36, Overvalued between 33.44 and 38.99, and Strongly Overvalued above 38.99. The current Forward EV/EBITDA of 23.83 falls within the Historic Trend Line -Fairly Valued range.

26.06

EV/EBIT

Edwards Lifesciences Corp. (EW) has a current EV/EBIT of 26.06. The 5-year average EV/EBIT is 30.32. The thresholds are as follows: Strongly Undervalued below 18.48, Undervalued between 18.48 and 24.40, Fairly Valued between 36.24 and 24.40, Overvalued between 36.24 and 42.15, and Strongly Overvalued above 42.15. The current Forward EV/EBIT of 26.06 falls within the Historic Trend Line -Fairly Valued range.

7.55

Edwards Lifesciences Corp. (EW) has a current PS of 7.55. The 5-year average PS is 9.37. The thresholds are as follows: Strongly Undervalued below 5.19, Undervalued between 5.19 and 7.28, Fairly Valued between 11.47 and 7.28, Overvalued between 11.47 and 13.56, and Strongly Overvalued above 13.56. The current Forward PS of 7.55 falls within the Historic Trend Line -Fairly Valued range.

27.38

P/OCF

Edwards Lifesciences Corp. (EW) has a current P/OCF of 27.38. The 5-year average P/OCF is 31.66. The thresholds are as follows: Strongly Undervalued below 16.92, Undervalued between 16.92 and 24.29, Fairly Valued between 39.02 and 24.29, Overvalued between 39.02 and 46.39, and Strongly Overvalued above 46.39. The current Forward P/OCF of 27.38 falls within the Historic Trend Line -Fairly Valued range.

32.50

P/FCF

Edwards Lifesciences Corp. (EW) has a current P/FCF of 32.50. The 5-year average P/FCF is 39.19. The thresholds are as follows: Strongly Undervalued below 18.93, Undervalued between 18.93 and 29.06, Fairly Valued between 49.32 and 29.06, Overvalued between 49.32 and 59.45, and Strongly Overvalued above 59.45. The current Forward P/FCF of 32.50 falls within the Historic Trend Line -Fairly Valued range.

Edwards Lifesciences Corp (EW) has a current Price-to-Book (P/B) ratio of 4.63. Compared to its 3-year average P/B ratio of 6.80 , the current P/B ratio is approximately -31.91% higher. Relative to its 5-year average P/B ratio of 9.04, the current P/B ratio is about -48.78% higher. Edwards Lifesciences Corp (EW) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 1.45%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.54% , the current FCF yield is about -100.00% lower.

4.63

P/B

Median3y

6.80

Median5y

9.04

0.00

FCF Yield

Median3y

1.45

Median5y

1.54

Competitors Valuation Multiple

The average P/S ratio for EW's competitors is 5.67, providing a benchmark for relative valuation. Edwards Lifesciences Corp Corp (EW) exhibits a P/S ratio of 7.55, which is 33.18% above the industry average. Given its robust revenue growth of 10.56%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

EW.N

Edwards Lifesciences Corp

IDEXX Laboratories Inc

Becton Dickinson and Co

GE Healthcare Technologies Inc

1.73

2.73%

35.60B

Performance Decomposition

Market capitalization of EW increased by 24.49% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 25.54 to 33.47.

The secondary factor is the Revenue Growth, contributed 10.56%to the performance.

Overall, the performance of EW in the past 1 year is driven by P/E Change. Which is more unsustainable.

10.56%

1.39B → 1.53B

Revenue Growth

-17.10%

26.44 → 21.92

Margin Expansion

31.03%

25.54 → 33.47

P/E Change

24.49%