EW

Edwards Lifesciences CorporatioHealthcare / Medical DevicesINTACT

Edwards Lifesciences Corporation provides products and technologies to treat advanced cardiovascular diseases in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL and EVOQUE brands. The company also provides surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS brand name; INSPIRIS RESILIA aortic valve, which offers RESILIA tissue and VFit technology; KONECT RESILIA, a pre-assembled tissue valve conduit for complex combined procedures; and MITRIS RESILIA valve. It distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.

Share Price
$84.06
52W: $72.3 - $96.29
DCF Fair Value
$66.67
-26.1% Premium
P/E (TTM)
50x
ROIC
22.4%
Operating Margin
29.8%
FCF Yield
2.5%
Debt / Equity
0.07x
Piotroski Score
9/9
Altman Z-Score
3.14
Market Cap
$48.4B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($66.67)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$66.67
MOS Buy Target (-25%)
$50.00
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$84.06
DCF Fair Value
$66.66
-26.1% Premium
$1,232M
$100M$1,232M (Reported)$50,000M
14.9%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
-$3,600M (Net Cash)
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$14.3B
PV of Terminal Value
$20.5B
Implied Enterprise Value
$34.8B
Implied Equity Value
$38.4B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$1,416$1,626$1,869$2,147$2,467$2,578$2,694$2,816$2,942$3,075
Present Value (PV)$1,299$1,369$1,443$1,521$1,604$1,537$1,474$1,413$1,355$1,299

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-218.5% Premium
$26.39

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $1.68BVPS: $18.42
Revised Graham Formula-76.6% Premium
$47.59

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings2.4% Yield
$2.03 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.2BYield: 2.4%

Reverse DCF: Market Growth Expectation

HIGH BARRIER
14.6% CAGR (Next 10 Yrs)

At the current price of $84.06, the market is assuming the business will compound Free Cash Flow at 14.6% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
ℹ Fair expectations: Requires steady execution.
Autonomous Thesis Underwriting

Surveil EW with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Edwards Lifesciences Corporatio. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 29.8% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Edwards Lifesciences Corporatio (EW) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Edwards Lifesciences Corporatio.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Edwards Lifesciences Corporatio has an estimated DCF intrinsic fair value of $66.67 per share compared to its current market price of $84.06. This represents an estimated 26.1% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $26.38.

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