EW
Edwards Lifesciences Corporation
$85.21
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 124.1% above fair value
You pay
$85.21
Bear
$30.42
Fair
$38.02
Bull
$45.62
Bear
$30.42
-64.3%
$2.38 × 13x P/E
Fair
$38.02
-55.4%
$2.38 × 16x P/E
Bull
$45.62
-46.5%
$2.38 × 19x P/E
Adjust Assumptions
16.0x
2.38$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
35.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (49 analysts)
$101.70
Divergence from AlphaVal
63%
Summary
Applying a 16x P/E to adjusted EPS of $2.38, the base-case value is $38.02 per share.
Warnings
The company's reported profits differ from official accounting profits by 30%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $101.70 (from 49 analysts). Our estimate is 63% 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