Edwards Lifesciences Corporation

DB:EWL Stock Report

Market Cap: €39.9b

Edwards Lifesciences Valuation

Is EWL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of EWL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EWL (€67) is trading below our estimate of fair value (€68.92)

Significantly Below Fair Value: EWL is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EWL?

Key metric: As EWL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for EWL. This is calculated by dividing EWL's market cap by their current earnings.
What is EWL's PE Ratio?
PE Ratio26.5x
EarningsUS$1.57b
Market CapUS$41.57b

Price to Earnings Ratio vs Peers

How does EWL's PE Ratio compare to its peers?

The above table shows the PE ratio for EWL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.8x
SHL Siemens Healthineers
28.6x14.2%€55.6b
AFX Carl Zeiss Meditec
24.4x16.3%€5.0b
DRW3 Drägerwerk KGaA
7.2x2.0%€796.1m
EUZ Eckert & Ziegler
23.2x5.9%€831.3m
EWL Edwards Lifesciences
26.5x1.9%€41.6b

Price-To-Earnings vs Peers: EWL is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the peer average (20.8x).

Price to Earnings Ratio vs Industry

How does EWL's PE Ratio compare vs other companies in the European Medical Equipment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
EWL 26.5xIndustry Avg. 29.5xNo. of Companies7PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EWL is good value based on its Price-To-Earnings Ratio (26.5x) compared to the European Medical Equipment industry average (29.5x).

Price to Earnings Ratio vs Fair Ratio

What is EWL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EWL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.5x
Fair PE Ratio27x

Price-To-Earnings vs Fair Ratio: EWL is good value based on its Price-To-Earnings Ratio (26.5x) compared to the estimated Fair Price-To-Earnings Ratio (27x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst EWL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€67.00
€70.23
+4.8%
9.8%€89.00€57.92n/a28
Nov ’25€62.12
€70.59
+13.6%
9.8%€89.49€58.24n/a28
Oct ’25€59.04
€70.16
+18.8%
9.6%€87.45€58.72n/a27
Sep ’25€63.07
€75.22
+19.3%
11.1%€93.67€60.03n/a27
Aug ’25€57.55
€75.22
+30.7%
11.1%€93.67€60.03n/a27
Jul ’25€84.57
€89.50
+5.8%
10.2%€99.70€65.23n/a27
Jun ’25€80.81
€89.15
+10.3%
9.6%€98.80€67.41n/a28
May ’25€79.65
€88.96
+11.7%
9.5%€97.93€68.09n/a28
Apr ’25€88.92
€85.85
-3.5%
9.2%€97.34€66.74n/a28
Mar ’25€78.60
€84.46
+7.5%
8.3%€97.15€66.61n/a28
Feb ’25€74.00
€73.64
-0.5%
12.3%€88.32€52.44n/a28
Jan ’25€69.00
€72.36
+4.9%
12.3%€87.25€51.81n/a28
Dec ’24€62.44
€73.02
+16.9%
14.4%€92.85€51.89n/a28
Nov ’24€59.44
€77.07
+29.7%
13.8%€96.52€59.62€62.1227
Oct ’24€65.90
€90.48
+37.3%
8.8%€104.05€70.94€59.0426
Sep ’24€70.30
€87.49
+24.4%
8.8%€100.16€68.29€63.0724
Aug ’24€74.78
€87.49
+17.0%
8.8%€100.16€68.29€57.5524
Jul ’24€86.28
€87.06
+0.9%
8.5%€97.59€67.85€84.5723
Jun ’24€78.52
€87.06
+10.9%
8.5%€97.59€67.85€80.8123
May ’24€79.00
€84.15
+6.5%
8.7%€95.29€66.25€79.6522
Apr ’24€76.09
€80.09
+5.3%
9.6%€92.25€61.81€88.9222
Mar ’24€74.00
€83.62
+13.0%
13.5%€121.10€62.41€78.6022
Feb ’24€71.25
€80.64
+13.2%
14.1%€118.34€60.08€74.0022
Jan ’24€70.10
€85.99
+22.7%
16.0%€122.43€64.04€69.0023
Dec ’23€74.53
€90.55
+21.5%
13.8%€123.50€69.35€62.4422
Nov ’23€72.73
€96.83
+33.1%
13.4%€130.47€78.28€59.4423

Analyst Forecast: Target price is less than 20% higher than the current share price.

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