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Edwards Lifesciences Corporation (EW) Stock Analysis

Score A

Growth · Grade A · Bullish

Healthcare · Medical Devices

$82.33

Fair Value

$68.88

-16.3%

Conviction

10/10

Quality

A

Classification

Growth

Investment Thesis

Good opportunity: Solid company with good risk/reward at 9.8:1.

For New Investors

Quantitative score: high

For Current Holders

Quantitative score: neutral

Buy if

  • Price drops 15-20% (improves asymmetry)
  • Bull scenario catalysts materialize
  • Market-wide correction creates opportunity

Sell if

  • Bear scenario triggers occur
  • Quality metrics deteriorate (ROIC declining)
  • Better alternatives emerge

Valuation

Fair Value estimate: $68.88 (-16.3%). Overvalued vs fundamentals.

PEG-Based EPS

$123.49

FCF DCF Model

$62.08

EV/EBITDA

$70.92

Blended Fair Value

$68.88

Confidence

Medium

Methods

PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA, Revenue Multiple

Quality Analysis

A

101/120 points

Investable

ROE (3Y Avg)

24.4%

ROIC-WACC Spread

2.8%

D/E Ratio

0.1x

Current Ratio

3.7x

Interest Coverage

99x

FCF Positive Years

3/3

Quality Flags

  • ROIC spread: 2.8pp (got 7/25 pts)
  • Leverage: D/E 0.1x (14/15 pts)

Market Sentiment

Wall Street Consensus

$95.00

+15.4% Upside

27 analysts

Range: $85.00$110.00

Rating: Buy

Our model aligns with Wall Street consensus.

Trend & Technical

Bullish

Price ($82.43) is 1.4% above SMA 200 ($81.26). Bullish trend confirmed.

Technical Score90/100

Tech Score 90/100 — MOMENTUM ALIGNMENT. Healthy uptrend confirmed by RSI and MACD. Technical tailwind.

Risk & Reward

Asymmetry Ratio

9.77:1

Expected Return

+55.1%

Bull Upside

+97.7%

Bear Downside

-10.0%

Excellent asymmetry: 9.77:1 ratio. Upside significantly outweighs downside.

Verdict: Very Favorable

Scenario Analysis

Bear

Base

Bull

Buy Zone & Action Plan

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Technical Analysis

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Frequently Asked Questions

What is the fair value of EW?

Based on our multi-method conviction analysis, the estimated fair value of Edwards Lifesciences Corporation (EW) is $68.88. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA, Revenue Multiple and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is medium.

Is EW a buy, sell, or hold?

EW currently has a BUY rating with a conviction score of 10/10. Good opportunity: Solid company with good risk/reward at 9.8:1. Quantitative score: high.

Is EW a high-quality stock?

Edwards Lifesciences Corporation has a quality grade of A (101/120 points), rated as Investable. Key metrics include ROE of 24.4%, ROIC-WACC spread of 2.8%, and D/E ratio of 0.1x.

What type of stock is EW?

EW is classified as a "growth" in our framework. High P/E: 44.6x, Low dividend (reinvesting): 0.0%, Mature growth: 6.1%, Moderate growth: 6.1%, Market-like beta: 0.87

What do Wall Street analysts say about EW?

27 Wall Street analysts have a consensus price target of $95.00 for EW, representing +15.4% upside. Targets range from $85.00 to $110.00. The consensus recommendation is "Buy". Our model aligns with Wall Street consensus.

What are the risks of investing in EW?

The risk/reward asymmetry ratio for EW is 9.77:1, rated as Very Favorable. Excellent asymmetry: 9.77:1 ratio. Upside significantly outweighs downside. The expected return is +55.1%, with bull case upside of +97.7% and bear case downside of -10.0%.

What is the current trend for EW?

EW is in a bullish trend. Price ($82.43) is 1.4% above SMA 200 ($81.26). Bullish trend confirmed. The technical score is 90/100.

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Last updated: May 19, 2026 · Framework version 3.7

This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.