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 30.98 is considered Fairly compared with the five-year average of 34.64. The fair price of Edwards Lifesciences Corp (EW) is between 76.85 to 107.21 according to relative valuation methord.
Relative Value
Fair Zone
76.85-107.21
Current Price:84.83
Fair
30.98
PE
1Y
3Y
5Y
23.65
EV/EBITDA
Edwards Lifesciences Corp. (EW) has a current EV/EBITDA of 23.65. The 5-year average EV/EBITDA is 27.15. The thresholds are as follows: Strongly Undervalued below 15.92, Undervalued between 15.92 and 21.53, Fairly Valued between 32.77 and 21.53, Overvalued between 32.77 and 38.39, and Strongly Overvalued above 38.39. The current Forward EV/EBITDA of 23.65 falls within the Historic Trend Line -Fairly Valued range.
25.75
EV/EBIT
Edwards Lifesciences Corp. (EW) has a current EV/EBIT of 25.75. The 5-year average EV/EBIT is 29.53. The thresholds are as follows: Strongly Undervalued below 17.55, Undervalued between 17.55 and 23.54, Fairly Valued between 35.51 and 23.54, Overvalued between 35.51 and 41.50, and Strongly Overvalued above 41.50. The current Forward EV/EBIT of 25.75 falls within the Historic Trend Line -Fairly Valued range.
7.65
PS
Edwards Lifesciences Corp. (EW) has a current PS of 7.65. The 5-year average PS is 9.10. The thresholds are as follows: Strongly Undervalued below 4.83, Undervalued between 4.83 and 6.97, Fairly Valued between 11.23 and 6.97, Overvalued between 11.23 and 13.37, and Strongly Overvalued above 13.37. The current Forward PS of 7.65 falls within the Historic Trend Line -Fairly Valued range.
38.24
P/OCF
Edwards Lifesciences Corp. (EW) has a current P/OCF of 38.24. The 5-year average P/OCF is 31.68. The thresholds are as follows: Strongly Undervalued below 17.02, Undervalued between 17.02 and 24.35, Fairly Valued between 39.02 and 24.35, Overvalued between 39.02 and 46.35, and Strongly Overvalued above 46.35. The current Forward P/OCF of 38.24 falls within the Historic Trend Line -Fairly Valued range.
48.22
P/FCF
Edwards Lifesciences Corp. (EW) has a current P/FCF of 48.22. The 5-year average P/FCF is 38.79. The thresholds are as follows: Strongly Undervalued below 18.63, Undervalued between 18.63 and 28.71, Fairly Valued between 48.87 and 28.71, Overvalued between 48.87 and 58.96, and Strongly Overvalued above 58.96. The current Forward P/FCF of 48.22 falls within the Historic Trend Line -Fairly Valued range.
Edwards Lifesciences Corp (EW) has a current Price-to-Book (P/B) ratio of 4.86. Compared to its 3-year average P/B ratio of 6.20 , the current P/B ratio is approximately -21.67% higher. Relative to its 5-year average P/B ratio of 8.32, the current P/B ratio is about -41.63% higher. Edwards Lifesciences Corp (EW) has a Forward Free Cash Flow (FCF) yield of approximately 1.62%. Compared to its 3-year average FCF yield of 1.36%, the current FCF yield is approximately 19.35% lower. Relative to its 5-year average FCF yield of 1.55% , the current FCF yield is about 5.04% lower.
4.86
P/B
Median3y
6.20
Median5y
8.32
1.62
FCF Yield
Median3y
1.36
Median5y
1.55
Competitors Valuation Multiple
The average P/S ratio for EW's competitors is 5.87, providing a benchmark for relative valuation. Edwards Lifesciences Corp Corp (EW) exhibits a P/S ratio of 7.65, which is 30.42% above the industry average. Given its robust revenue growth of 14.67%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of EW increased by 17.09% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 28.27 to 37.33.
The secondary factor is the Revenue Growth, contributed 14.67%to the performance.
Overall, the performance of EW in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is Edwards Lifesciences Corp (EW) currently overvalued or undervalued?
Edwards Lifesciences Corp (EW) is now in the Fair zone, suggesting that its current forward PE ratio of 30.98 is considered Fairly compared with the five-year average of 34.64. The fair price of Edwards Lifesciences Corp (EW) is between 76.85 to 107.21 according to relative valuation methord.
What is Edwards Lifesciences Corp (EW) fair value?
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. The fair price of Edwards Lifesciences Corp (EW) is between 76.85 to 107.21 according to relative valuation methord.
How does EW's valuation metrics compare to the industry average?
The average P/S ratio for EW's competitors is 5.87, providing a benchmark for relative valuation. Edwards Lifesciences Corp Corp (EW) exhibits a P/S ratio of 7.65, which is 30.42% above the industry average. Given its robust revenue growth of 14.67%, this premium appears unsustainable.
What is the current P/B ratio for Edwards Lifesciences Corp (EW) as of Jan 09 2026?
As of Jan 09 2026, Edwards Lifesciences Corp (EW) has a P/B ratio of 4.86. This indicates that the market values EW at 4.86 times its book value.
What is the current FCF Yield for Edwards Lifesciences Corp (EW) as of Jan 09 2026?
As of Jan 09 2026, Edwards Lifesciences Corp (EW) has a FCF Yield of 1.62%. This means that for every dollar of Edwards Lifesciences Corp’s market capitalization, the company generates 1.62 cents in free cash flow.
What is the current Forward P/E ratio for Edwards Lifesciences Corp (EW) as of Jan 09 2026?
As of Jan 09 2026, Edwards Lifesciences Corp (EW) has a Forward P/E ratio of 30.98. This means the market is willing to pay $30.98 for every dollar of Edwards Lifesciences Corp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Edwards Lifesciences Corp (EW) as of Jan 09 2026?
As of Jan 09 2026, Edwards Lifesciences Corp (EW) has a Forward P/S ratio of 7.65. This means the market is valuing EW at $7.65 for every dollar of expected revenue over the next 12 months.