EW
Edwards Lifesciences Corporation
$85.78
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 66.9% above fair value
You pay
$85.78
Bear
$41.12
Fair
$51.41
Bull
$61.69
Bear
$41.12
-52.1%
$1.99 × 13x P/E
Fair
$51.41
-40.1%
$1.99 × 16x P/E
Bull
$61.69
-28.1%
$1.99 × 19x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
43.1x
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 $97.08 from 48 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $51.41 per share.
Warnings
Wall Street's average price target is $97.08 (from 48 analysts). Our estimate is 67% 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