EW
Edwards Lifesciences Corporation
$91.79
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 75.7% above fair value
You pay
$91.79
Bear
$41.80
Fair
$52.25
Bull
$62.71
Bear
$41.80
-54.5%
$1.99 × 13x P/E
Fair
$52.25
-43.1%
$1.99 × 16x P/E
Bull
$62.71
-31.7%
$1.99 × 19x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
46.1x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $99.91 from 48 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $52.25 per share.
Warnings
Wall Street's average price target is $99.91 (from 48 analysts). Our estimate is 68% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples