Edwards Lifesciences (EW): Assessing Valuation Following Raised 2025 Guidance and New Valve Technology Launch

Edwards Lifesciences (EW) has caught the spotlight with its upcoming third-quarter earnings release and a recent increase in 2025 sales and EPS guidance. Investors are weighing the company’s confident outlook in addition to its global innovation efforts.

See our latest analysis for Edwards Lifesciences.

Edwards Lifesciences has stayed in the spotlight, not just for its updated guidance but also for innovation milestones such as the recent launch of advanced valve technology in Thailand and its presence at major investor events. The stock’s 1-year total shareholder return of 19% hints at momentum building after a stretch of sluggish long-term results, suggesting renewed optimism tied to future growth opportunities and global expansion.

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Despite management’s upbeat guidance and new product launches, Edwards trades about 14% below the average analyst price target. The question remains: is there still upside as momentum returns, or has future growth already been priced in?

Most Popular Narrative: 12.7% Undervalued

With a last close of $76.56, the most widely followed narrative estimates Edwards Lifesciences’ fair value at $87.73. That is a notable gap, fueled by bold projections about the company’s future growth drivers. This sets up a big debate about what is priced in versus what is not.

The expected approval of the early TAVR indication in the second quarter, along with policy and guideline changes in the U.S. and globally, represents a multiyear growth opportunity that could significantly enhance revenue streams in the future. The planned launch of the transcatheter tricuspid valve EVOQUE in 2024 is anticipated to uniquely position Edwards to gain market share and increase revenues as it becomes the first company to develop and offer this therapy.

Read the complete narrative.

Curious what assumptions fuel this bullish stance? Insiders debate future industry leadership, changing patient access, and a profit trajectory few would expect. What is the pivotal number inspiring this narrative’s ambitious fair value? You will want to see for yourself how they justify it.

Result: Fair Value of $87.73 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks such as tariff impacts or tougher competition in key markets could erode margins and challenge the bullish outlook for Edwards Lifesciences.

Find out about the key risks to this Edwards Lifesciences narrative.

Another View: What Do the Multiples Say?

Looking at valuation through the lens of earnings ratios, Edwards Lifesciences trades at 31.8 times earnings. That is more expensive than the US Medical Equipment industry average at 31.1x, but actually below its peer average of 32.6x. However, the current ratio still sits above the fair ratio of 25.2x, which could signal caution if the market shifts toward that benchmark. With this gap, are investors paying a premium for Edwards' growth story or overlooking valuation risks?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Edwards Lifesciences Narrative

If you are inspired to dig deeper or would rather rely on your own research, you can investigate the numbers and craft a personal narrative in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Edwards Lifesciences.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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