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Edwards Lifesciences Corp (EW) Stock

Edwards Lifesciences Corp Stock Details, Movements and Public Alerts

Edwards Lifesciences (EW): The $50B Heart Valve Pioneer Facing Structural Growth Challenges

Michael Mussallem built Edwards Lifesciences into the world's premier structural heart company across 23 years as CEO—pioneering TAVR, the minimally invasive procedure that replaces surgical heart valve replacement for hundreds of thousands of patients annually. When Bernard Zovighian assumed the CEO role in 2024, he inherited both the fruits of that innovation (65%+ TAVR market share, $5.4B revenue, 30%+ operating margins) and its challenges: procedure growth slowing from 15%+ to 8-10% as high-risk patient penetration saturates, Medtronic's Evolut platform gaining share, and Critical Care spinoff (2024) leaving a more focused but slower-growth company. At $85 (28x forward earnings, down from 45x), EW prices in deceleration—but the 10-15 year TAVR runway into lower-risk patients, TMTT (transcatheter mitral/tricuspid) pipeline, and dominant competitive position create optionality if Zovighian executes.

52-Week Range

$87.89 - $65.94

-5.14% from high · +26.43% from low

Avg Daily Volume

4,004,718

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

36.92

Above market average

Forward P/E

29.67

Earnings expected to grow

PEG Ratio

4.75

Potentially overvalued

Price to Book

4.79

EV/EBITDA

24.55

EPS (TTM)

$2.25

Price to Sales

8.29

Beta

0.97

Less volatile than market

How is EW valued relative to its earnings and growth?
Edwards Lifesciences Corp trades at a P/E ratio of 36.92, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 29.67 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 4.75 indicates a premium valuation even accounting for growth.
What is EW's risk profile compared to the market?
With a beta of 0.97, Edwards Lifesciences Corp is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 4.79 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

23.30%

Operating Margin

27.40%

EBITDA

$1.79B

Return on Equity

13.50%

Return on Assets

7.72%

Revenue Growth (YoY)

14.70%

Earnings Growth (YoY)

-90.30%

How profitable and efficient is EW's business model?
Edwards Lifesciences Corp achieves a profit margin of 23.30%, meaning it retains $23.30 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 27.40% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 13.50% and ROA at 7.72%, the company achieves moderate returns on invested capital.
What are EW's recent growth trends?
Edwards Lifesciences Corp's revenue grew by 14.70% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 90.30% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against MEDICAL DEVICES industry averages for proper context.

Company Size & Market

Market Cap

$48.8B

Revenue (TTM)

$5.88B

Revenue/Share (TTM)

$10.02

Shares Outstanding

580.30M

Book Value/Share

$17.57

Asset Type

Common Stock

What is EW's market capitalization and position?
Edwards Lifesciences Corp has a market capitalization of $48.8B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 580.30M shares outstanding, the company's ownership is relatively concentrated. As a participant in the MEDICAL DEVICES industry, it competes with other firms in this sector.
How does EW's price compare to its book value?
Edwards Lifesciences Corp's book value per share is $17.57, while the current stock price is $83.37, resulting in a price-to-book (P/B) ratio of 4.75. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$95.55

14.61% upside potential

Analyst Recommendations

Strong Buy

4

Buy

15

Hold

14

Sell

0

Strong Sell

0

How reliable are analyst predictions for EW?
33 analysts cover EW with 58% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $95.55 implies 14.6% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on EW?
Current analyst recommendations:4 Strong Buy, 15 Buy, 14 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:26 AM

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Edwards Lifesciences (EW) Stock Analysis 2025: Complete Investment Guide

The TAVR Revolution and What Comes Next

Edwards Lifesciences didn't just create a product—it created a category. Transcatheter aortic valve replacement (TAVR) enables cardiologists to replace diseased heart valves through a catheter inserted via the leg, avoiding open-heart surgery's chest-cracking trauma. When Edwards launched SAPIEN in 2011, TAVR was limited to patients too sick for surgery. Fourteen years later, the procedure is standard of care for moderate-risk patients, with clinical trials expanding into low-risk (2019 approval) and asymptomatic (ongoing trials) populations. Edwards' 65%+ market share and $3.8B TAVR revenue reflect first-mover advantage and sustained innovation (SAPIEN 3 Ultra, now SAPIEN X4). However, CEO Bernard Zovighian (promoted 2024 after Mussallem's retirement) faces the challenge every category creator encounters: penetration saturation and intensifying competition.

Business Model & Competitive Moat

Edwards' moat combines clinical data, physician relationships, and procedural expertise. The SAPIEN platform has more clinical evidence than any competitor—20+ pivotal trials, 500,000+ implants, 10+ year outcome data enabling confident physician adoption. Edwards field teams train cardiologists on TAVR technique, creating switching costs beyond device preference. Manufacturing precision (heart valves require bovine tissue processing at micron tolerances) establishes quality barriers. However, Medtronic's Evolut platform (30%+ share, self-expanding design) competes effectively, while Abbott's Navitor gained 5%+ share since 2022 launch. Edwards' response: expand TMTT (mitral/tricuspid, earlier-stage markets with less competition) and push TAVR into lower-risk patients where surgeon referral patterns favor the market leader.

Financial Performance

  • •Revenue: $5.4B (2024), 8-10% growth; TAVR $3.8B (70%), Surgical $1.2B, TMTT $450M
  • •Profitability: 30%+ operating margins, 20%+ net margins; best-in-class among medical devices
  • •Free Cash Flow: $1.2B+ annually (22% FCF margin); funds R&D and buybacks
  • •Balance Sheet: Zero net debt, $2B+ cash; investment-grade credit, acquisition capacity
  • •Capital Allocation: 65% to R&D/growth, 35% to buybacks; no dividend (growth focus)

Growth Catalysts

  • •TAVR Low-Risk Expansion: 60-70% of aortic stenosis patients now TAVR-eligible; penetration only 30-40% in many markets
  • •Asymptomatic TAVR: EARLY TAVR trial (results 2025-2026) could expand addressable market 50%+ if positive
  • •TMTT Commercialization: PASCAL (mitral) and EVOQUE (tricuspid) systems targeting $2-3B market by 2030
  • •International Growth: Non-U.S. TAVR penetration 15-20% vs. 35-40% domestic; 5-10 years of catch-up growth
  • •SAPIEN X4 Launch: Next-gen platform improving outcomes and deliverability; cycling older systems through 2026

Risks & Challenges

  • •TAVR Growth Deceleration: High-risk market saturating; procedure growth slowing from 15%+ to 8-10% annually
  • •Medtronic Competition: Evolut platform gaining share; self-expanding design preferred in some anatomies
  • •TMTT Execution Risk: Mitral/tricuspid markets less defined than TAVR; clinical data underwhelming vs. surgical repair
  • •Reimbursement Pressure: Hospital budgets constrained; value-based contracting could compress pricing
  • •Single-Product Concentration: TAVR = 70% of revenue; any competitive disruption is existential

Competitive Landscape

Edwards competes with Medtronic (Evolut TAVR, $2B+ revenue, 30% share) and Abbott (Navitor TAVR, 5%+ share, growing). In TMTT, Abbott's MitraClip (mitral repair, $1B+ revenue) leads, while Edwards' PASCAL competes in the transcatheter mitral replacement/repair category. Medtronic's scale (diversified $30B company) enables pricing pressure Edwards (pure-play) cannot match long-term. However, Edwards' structural heart focus drives faster innovation cycles—SAPIEN iterations outpace Evolut updates—and deeper physician relationships in interventional cardiology. Bernard Zovighian's strategy prioritizes clinical differentiation: proving SAPIEN's outcomes superiority sustains premium pricing versus competing on volume/discount models.

Who Is This Stock Suitable For?

Perfect For

  • ✓Healthcare investors seeking med-tech exposure with proven market leadership
  • ✓Quality-focused portfolios accepting mid-single-digit growth for 30%+ margins
  • ✓Long-term holders (5+ years) betting on TAVR TAM expansion and TMTT maturation
  • ✓Investors buying valuation reset from 45x to 28x as entry opportunity

Less Suitable For

  • ✗Growth investors requiring 15%+ annual revenue expansion
  • ✗Value investors seeking cheap healthcare (28x P/E still premium to market)
  • ✗Momentum traders (stock range-bound as growth decelerates)
  • ✗Income seekers (no dividend, buyback-only capital return)

Investment Thesis

Edwards Lifesciences represents a high-quality med-tech franchise experiencing growth deceleration. The 28x forward P/E (down from 45x in 2021) reflects TAVR slowdown from 15%+ to 8-10%, but also creates opportunity: market leadership (65% share), 30%+ operating margins, and pipeline optionality (TMTT, asymptomatic TAVR) remain intact. New CEO Bernard Zovighian inherits both challenges and assets—execution on TMTT commercialization and TAVR low-risk expansion determines whether EW re-rates to 35x+ or compresses toward 22-25x.

The stock is a patience bet on structural heart's long-term growth. TAVR penetration (30-40% of eligible patients) has years of expansion ahead, while TMTT ($2-3B market by 2030) provides optionality. Edwards' zero-debt balance sheet and $1.2B+ free cash flow fund sustained R&D investment and buybacks. At $85, the valuation reflects skepticism—upside requires growth reacceleration, downside limited by franchise quality. Suitable for healthcare allocations with 3-5 year horizons accepting mid-single-digit growth for premium margins.

Conclusion

Edwards Lifesciences is a HOLD/ACCUMULATE for quality-focused healthcare investors. The 28x P/E is premium but justified by market leadership, 30%+ margins, and pipeline potential. Growth deceleration warrants patience rather than aggressive buying—accumulate on 10-15% pullbacks for 3-5 year positions. New CEO Bernard Zovighian must prove TMTT execution and TAVR expansion; watch Q1-Q2 2025 results for trajectory confirmation.
Bull Case
$110 (29% upside) - TAVR reaccelerates to 12%+, TMTT scales to $700M+, multiple re-rates to 32x
Base Case
$95 (12% upside) - 8-10% growth continues, margins stable, buybacks support valuation
Bear Case
$68 (20% downside) - Growth slows to 5-6%, Medtronic gains share, multiple compresses to 22x

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