EW
Edwards Lifesciences Corporation$81.64
Sell
Target $70.72
Report: Mar 08, 2026Healthcare • Medical - Devices • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$81.64-13.4%
Rec: SellConviction: Low
Entry Target
N/A
N/A
Fair Value
$70.72
(13% below current)
Stop Loss
N/A
N/A
Position Size
None
Time Horizon
N/A
Key Metrics
Live Snapshot
Market Data
52 Week High$87.89
52 Week Low$65.94
Avg. 3 Month Volume4.50M
Efficiency
LTM Gross Margin78.0%
LTM EBITDA Margin24.6%
LTM EBIT Margin21.6%
LTM Operating Margin18.2%
LTM ROA8.0%
LTM ROE10.4%
LTM ROIC19.9%
LTM ROCE11.1%
Capital Structure
Market Cap (MM)$46.4B
Enterprise Value (MM)$44.2B
Shares Outstanding580.60M
Total Debt (MM)$705.40M
Cash & Equivalents (MM)$2.94B
LTM Net Debt (MM)$-2.23B
LTM Net Debt/EBITDA-1.5x
Growth
TTM Rev. Growth6.0%
Last 3-Yr Rev. CAGR4.1%
Last 3-Yr EBITDA CAGR-8.5%
Last 3-Yr EPS CAGR-9.1%
Valuation
Street Target Price$96.38
LTM EV/Revenue7.3x
LTM EV/Gross Profit9.3x
LTM EV/EBIT33.7x
LTM EV/EBITDA29.6x
LTM P/E43.3x
LTM EV/FCF33.1x
LTM P/FCF34.8x
LTM P/TB4.3x
LTM P/B4.5x
Dividend Yield0.0%
Payout Ratio0.0%
Executive SummarySituation: Current price is $81.64 versus fair value $70.72 (-13.4% expected return), and valuation confidence is stable. Debate: Bull case depends on Failure to meet FY2026 operating margin guidance of 22 percent. Bear case centers on Moat erosion in the core TAVR market. Conclusion: Recommendation is Sell with no position, pending a materially better risk/reward setup.
Bull Case
Explosive TMTT adoption (61.9 percent growth) creates a massive second growth lever; clinical data for asymptomatic patients expands the TAVR addressable market by 2027; fortress balance sheet with 2.23 billion dollars in net cash supports aggressive buybacks.
Bear Case
Structural margin collapse from 25.3 percent to 18.2 percent indicates lost pricing power; negative incremental ROIC of -674.2 percent suggests value destruction; heavy insider selling (19.6 million dollars) signals lack of management confidence.
Key Catalysts
Mid-Term (6-18 months)Impact: High
Failure to meet FY2026 operating margin guidance of 22 percent. This would validate our concern that margin compression is structural and no...
Mid-Term (6-18 months)Impact: Moderate
Resolution of the shareholder class action. An unfavorable ruling or a large settlement would further impair management's credibility and dr...
Long-Term (18+ months)Impact: Moderate
Edwards Lifesciences is at a critical juncture following the completion of its pure-play pivot and the announcement of a major CFO transitio...
Primary Risks
Concern: High
Moat erosion in the core TAVR market. Increased competition from Medtronic and Abbott could permanently impair pricing power and return on c...
Concern: Medium
Execution risk in TMTT expansion. Failure to achieve the projected 2 billion dollars in TMTT sales by 2030 would leave the company with sign...
Concern: Medium
The governance environment is in a state of flux. We identify a three-pronged Governance Outcome Tree: 1. Status Quo: Management continues t...
Recent Activity
2025-07-25SEC Filing (8-K)
+5.54%Edwards Lifesciences reports Q2 2025 results with 10.6% adjusted sales growth
2025-04-24SEC Filing (8-K)
+6.63%Edwards Lifesciences reports Q1 2025 results with 7.9% sales growth
2025-02-12SEC Filing (8-K)
+6.92%Edwards Lifesciences reports Q4 2024 financial results with 9% sales growth and $0.59 adjusted EPS
2024-07-25SEC Filing (8-K)
-31.34%Edwards Lifesciences reports Q2 2024 financial results with 7% sales growth and $0.70 adjusted EPS
2023-10-26SEC Filing (8-K)
-8.14%Edwards Lifesciences reported Q3 2023 results with 12% sales growth and multiple regulatory approvals.
Valuation Table
9.8/10Decision Grade