QualityDipStocks / Health Care · Industrial Specialties
Edwards Lifesciences EW
Not in a dip by our rules: 3% below its 52-week high.
A quality company trading well above our fair value estimate, 5% over its Market Value.
- Fair value est.
- $60.75−34%
- Market Value
- $87.98price +5%
- Off 52-wk high
- −3%
- Risk vs market
- Lowbeta 0.55
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $92.01
- Fair value est.base case$60.75−34.0%
- 52-wk lowlowest close, 1 year$75.87−17.5%
- Market Valueavg paid since Jul 23$87.98−4.4%
- PriceFri Oct 30 close$92.01you are here
- 52-wk highhighest close, 1 year$95.18+3.4%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 10.8% ±2 points. Bear = 10.5% and 8.8%; bull = 8.5% and 12.8% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is above even the bull case.
What the price implies To be worth today’s price, EW’s free cash flow would need to grow about 18% a year for five years; our estimate uses 11%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much EW moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 2.0× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.55
- Volatility
- 25% vs 13% SPY
- Correlation SPY
- 0.28
- Correlation QQQ
- 0.18
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
Cash returnsFree cash flow grew 144% over the last 12 months vs the 12 months before.
Balance sheetNet cash of $3.7B: cash and short-term investments exceed debt (Jun 30, 2026).
GrowthSales grew 15% to $6.5B over the last 12 months vs the 12 months before (SEC filings).
Balance sheetDebt / equity of 0.1×, below the 0.7× median for the 67 Health Care companies we cover.
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $60.75, 34% below the price.
ValuationP/E of 52.9× is 76% above its own average of 30.1× at the last 3 fiscal year-ends.
GrowthDiluted EPS fell 74% to $1.83 in FY2025.
ProfitabilityOperating margin narrowed to 20.8% in FY2025 from 26.1% in FY2023 (SEC filings).
ProfitabilityReturn on equity fell 11 points in two fiscal years, to 10% in FY2025.
Who’s talking about it
Notable investors, executives, analysts and public figures on Edwards Lifesciences in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Industrial Specialties
All fundamentals
P/E 52.9 · FCF yield 2.7% · ROE 9%
Valuation
- P/E
- 52.9×3-yr-end avg 30.1× · Health Care median 29.2×
- Price / FCF
- 37.1×
- FCF yield
- 2.7%
- EV / EBITDA
- 30.7×
- Price / sales
- 8.16×
- Price / book
- 5.01×
- Market cap
- $53.1Bprice × diluted shares
- Enterprise value
- $49.5B
Growth
- Revenue, 12 months
- $6.5B
- Sales growth, 12 months
- +14.6%vs the 12 months before
- Sales growth, 3 yrs
- +10.8%/yrfrom FY2022
- Diluted EPS, 12 months
- $1.72
- EPS growth, last FY
- −73.7%
- Net income, 12 months
- $1.0B
- Net income growth
- −76%12 months vs before
Profitability
- Gross margin
- 77.8%
- Operating margin
- 22.3%
- Net margin
- 15.4%
- FCF margin
- 22.0%
- Return on equity
- 9%
- Return on invested capital
- 14%
Balance sheet
- Cash & short-term inv.
- $4.3B
- Total debt
- $599M
- Net cash
- $3.7B
- Debt / equity
- 0.06×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $1.4B
- FCF growth, 12 months
- +144%
- Dividend yield
- 0%
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- $1.2B2.3% of market cap
- Share count, 1 year
- −1.8%diluted shares vs a year ago
- Stock-based comp
- $168M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From Edwards Lifesciences’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $60.75 · MV $87.98 · FCF value $60.47
Assumes 10.8% growth for 5 years (revenue grew 10.8% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $2.48 a share (trailing 12 months to Jun 30, 2026), from the 10-Q filed Aug 4, 2026. Net cash $3.7B, not added.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only arm once a company is in a dip.
Momentum & 52-week range
RSI 60 · 5 days +3.3%
The business
FCF $1.4B · Sales +17%
- Free cash flow, 12 months$1.4B
- Free-cash-flow yield2.6%
- Free-cash-flow margin22%
- Gross margin78%
- Operating margin28%
- Return on invested capital13%
- Return on equity10%
- Sales growth (latest quarter vs year-ago quarter)+17%
- Net debt / EBITDA−1.1×
Next report
Nov 4
- DateWed Nov 4, after the close
- Consensus EPS$0.73
- Year-ago EPS$0.67
- QuarterSep/2026
From Nasdaq’s earnings calendar. A report resets Market Value.
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
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