Edwards Lifesciences Corporation (EW) Stock Valuation — PE Analysis
Medical - Devices · NYSE
Current Price
$85.11
PE Ratio (TTM)
45.1x
Intrinsic Value
$103.39
+17.7% margin of safety
COMPETITIVE MOAT
↑Pioneering Transcatheter Valve Technology
Edwards Lifesciences holds a dominant position in the transcatheter aortic valve replacement (TAVR) market. Their early innovation and extensive clinical data create a significant barrier to entry for competitors.
↑Strong Intellectual Property Portfolio
The company possesses a robust patent portfolio protecting its core technologies in heart valve replacement and critical care monitoring. This shields their market share from direct imitation.
↑Established Physician Relationships
Decades of collaboration with cardiologists and cardiac surgeons have fostered deep trust and loyalty. This network is crucial for adoption of new devices and procedures.
INVESTMENT RISKS
↓Intensifying Competition in TAVR
While a leader, Edwards faces increasing competition in the TAVR space from established medical device companies and new entrants. This could pressure pricing and market share.
↓Regulatory Hurdles and Reimbursement
New device approvals and changes in healthcare reimbursement policies can impact sales and profitability. Delays or unfavorable decisions pose a significant risk.
↓Dependence on Key Product Lines
The company's revenue is heavily reliant on its TAVR and critical care segments. Any disruption or decline in these areas could disproportionately affect financial performance.
Base case
EW base case PE valuation
A base case PE valuation for EW estimates a fair value of about $103.39 per share, against a current price of $85.11. The model assumes 12.1% annual earnings growth, a 45x target PE multiple, and a 10% discount rate.
Intrinsic Value
$103.39
Margin of safety
+17.7%
Expected annual return
+4.0%
Base case assumptions: 12.1% annual earnings growth, 45x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the EW PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Edwards Lifesciences Corporation respond.
Open PE Calculator for EWCompany Overview
Edwards Lifesciences Corporation is a global medical technology firm specializing in sophisticated products and technologies for structural heart conditions, alongside critical care and surgical patient monitoring. With operations spanning the United States, Europe, Japan, and various international territories, the company offers a comprehensive suite of solutions. Their structural heart disease portfolio encompasses transcatheter heart valve replacement systems designed for minimally invasive procedures, as well as transcatheter repair and replacement options specifically targeting mitral and tricuspid valve pathologies, exemplified by their PASCAL and Cardioband systems. Additionally, they provide advanced surgical structural heart solutions, including the INSPIRIS aortic surgical valve, the KONECT RESILIA pre-assembled aortic tissue valved conduit for complex valve, root, and ascending aorta replacements, and the HARPOON Beating Heart Mitral Valve Repair System for patients suffering from degenerative mitral regurgitation. In the realm of critical care, Edwards supplies advanced hemodynamic monitoring systems that assess patients' cardiac function and fluid status in both surgical and intensive care environments. This offering also features the Acumen Hypotension Prediction Index software, which provides early alerts to clinicians regarding potential dangerously low blood pressure. The company distributes its products to healthcare providers through a combination of its proprietary sales force and independent distributor networks. Founded in 1958, Edwards Lifesciences Corporation maintains its headquarters in Irvine, California.
Financial Metrics — EW PE Stock Valuation Data
PE Ratio (TTM)
45.1x
PEG Ratio
n/m
Earnings Yield
2.22%
ROE (TTM)
10.6%
Revenue/Share (TTM)
$10.88
Debt/Equity
0.07x
Frequently Asked Questions
What is the PE ratio of EW?
The trailing twelve-month PE ratio of EW reflects how much investors pay per dollar of Edwards Lifesciences Corporation's earnings. This metric is most useful when compared to Medical - Devices peers and the company's own historical range.
Is EW overvalued based on PE ratio?
EW's PE of 45.1x combined with a PEG ratio of -0.62 provides a growth-adjusted perspective. EW has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Devices, a DCF analysis may be more appropriate.
How do I value EW stock using PE ratio?
To value Edwards Lifesciences Corporation using PE: (1) Compare the current PE (45.1x) against the Medical - Devices median to assess relative pricing, (2) check the PEG ratio (-0.62) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of EW?
EW's PEG ratio is -0.62, calculated by dividing the PE ratio (45.1x) by the expected earnings growth rate. Because EW has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for EW stock valuation?
PE ratio gives a quick relative read — how EW is priced versus Medical - Devices peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See EW DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value EW with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.