EW Edwards Lifesciences

healthcare · valued with sonnet medium conviction · 2026-07-24

HOLD

good · 80 ▟ wide moat circle of competence: in ✓ would own for a decade trend flat · +0.5% vs 200-DMA

Owner-earnings value$43.83

Price$83.82

Margin of safety -47.7%

Wonderful regulatory-moat medtech, but price already bakes in ~25% growth versus a realistic ~10%.

The business

Edwards Lifesciences makes surgical and transcatheter heart valves (TAVR, mitral/tricuspid) and hemodynamic monitoring systems, selling to hospitals and cardiac surgeons/cardiologists who implant devices in a recurring, high-clinical-stakes replacement cycle.

Quality gate · 80/100

Returns on capital 20.2/30

Consistency 18.8/22

Margins / pricing power 15.9/16

Balance sheet 16.0/16

Cash conversion 3.1/10

Capital allocation 5.6/6

Median ROIC14.1%

Gross margin77.9%

Net debt / EBITDA-1.4x

FCF conversion39%

Share count / yr-1.5%

Profitable years4/4

Moat & management

Moat	▟ wide moat
Source	regulatory
Trajectory	stable
Management	excellent

Structural heart devices require years of clinical trials, FDA approval, and physician retraining/proctoring before adoption, creating durable switching costs and regulatory barriers; Edwards has iterated TAVR platforms (Sapien) for over a decade maintaining leadership, though Medtronic, Abbott, and Boston Scientific are credible competitors in adjacent structural heart segments (mitral/tricuspid), keeping the moat from widening further.

Management has consistently reinvested heavily in R&D/clinical trials to defend TAVR leadership and expand into mitral/tricuspid, while shrinking share count (-1.5% CAGR) and maintaining a net-cash balance sheet rather than over-levering for M&A.

Owner-earnings inputs

Owner earnings (TTM)	1.09B
Owner-earnings yield	2.3%
Free-cash-flow yield	2.3%
Growth used (normalized)	10.0%
Market-implied growth (reverse DCF)	25.0%
Terminal growth	3.0%
Discount rate (hurdle)	9.0%

Projected owner earnings

Yr	Owner earnings	Growth	PV
1	1.10B	10.0%	1.01B
2	1.20B	9.2%	1.01B
3	1.31B	8.4%	1.01B
4	1.41B	7.7%	996.15M
5	1.50B	6.9%	976.86M
6	1.59B	6.1%	950.96M
7	1.68B	5.3%	918.98M
8	1.76B	4.6%	881.50M
9	1.82B	3.8%	839.27M
10	1.88B	3.0%	793.07M

Key risks

TAVR/TMTT market share erosion from Medtronic, Abbott, Boston Scientific in mitral/tricuspid
Reimbursement or hospital capital-spending pressure slowing procedure volume growth
Pipeline/clinical trial setbacks (e.g., in newer transcatheter mitral/tricuspid programs) delaying next growth leg
FCF conversion (0.39) well below net income, indicating working-capital or capex intensity that could persist

Catalysts

Continued TAVR indication expansion (younger/lower-risk patients) and international penetration
TMTT (mitral/tricuspid) platform reaching commercial scale as a new growth pillar
Structural heart category growth as an aging population increases valve replacement volumes

Recent news

score · 8 articles

Edwards Lifesciences Corp (EW) Q2 2026 Earnings Call Highlights: Strong Sales Growth and ...
Edwards Lifesciences Q2 Earnings Call Highlights
Edwards Lifesciences (EW) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
Edwards Lifesciences Narrows Full-Year Sales Outlook After Second-Quarter Growth
Edwards Stock Launches As Heart-Valve Replacements Beat On
Edwards' Q2 Earnings on the Horizon: What's in the Cards?
Edwards Lifesciences served $10m penalty over JC Medical acquisition violations
FTC Says Henkel Deal Would Merge ‘Coke and Pepsi’ of Adhesives

⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Net cash 2.2B credited to value (interest stripped from owner earnings to avoid double-counting). · Price pays for ~25%/yr owner-earnings growth over 10y (reverse DCF); model credits 10%. · Rich vs our conservative value, but a quality business is not a short — stance is WAIT for a better price, not sell.

Date	Quality	Price	Value	MoS	Rating
2026-10-28	80	$90.82	$43.63	-52.0%	HOLD
2026-10-27	80	$90.56	$43.63	-51.8%	HOLD
2026-10-26	80	$89.07	$43.63	-51.0%	HOLD
2026-10-23	80	$90.09	$43.63	-51.6%	HOLD
2026-10-22	80	$88.40	$43.63	-50.6%	HOLD
2026-10-21	80	$88.29	$43.63	-50.6%	HOLD
2026-10-20	80	$87.22	$43.63	-50.0%	HOLD
2026-10-19	80	$86.60	$43.63	-49.6%	HOLD
2026-10-16	80	$88.10	$43.63	-50.5%	HOLD
2026-10-15	80	$86.45	$43.63	-49.5%	HOLD
2026-10-14	80	$85.27	$43.63	-48.8%	HOLD
2026-10-13	80	$86.39	$43.63	-49.5%	HOLD
2026-10-12	80	$85.21	$43.63	-48.8%	HOLD
2026-10-09	80	$84.24	$43.63	-48.2%	HOLD
2026-10-08	80	$85.78	$43.63	-49.1%	HOLD
2026-10-07	80	$86.48	$43.63	-49.5%	HOLD
2026-10-06	80	$87.23	$43.63	-50.0%	HOLD
2026-10-05	80	$85.15	$43.63	-48.8%	HOLD
2026-10-02	80	$85.19	$43.63	-48.8%	HOLD
2026-10-01	80	$86.32	$43.63	-49.5%	HOLD
2026-09-30	80	$88.08	$43.63	-50.5%	HOLD
2026-09-29	80	$86.83	$43.63	-49.8%	HOLD
2026-09-28	80	$86.29	$43.63	-49.4%	HOLD
2026-09-25	80	$85.73	$43.63	-49.1%	HOLD
2026-09-24	80	$86.82	$43.63	-49.7%	HOLD
2026-09-23	80	$88.34	$43.63	-50.6%	HOLD
2026-09-22	80	$88.34	$43.63	-50.6%	HOLD
2026-09-21	80	$88.26	$43.63	-50.6%	HOLD
2026-09-18	80	$88.25	$43.63	-50.6%	HOLD
2026-09-17	80	$89.28	$43.63	-51.1%	HOLD
2026-09-16	80	$85.74	$43.63	-49.1%	HOLD
2026-09-15	80	$85.52	$43.63	-49.0%	HOLD
2026-09-14	80	$84.37	$43.63	-48.3%	HOLD
2026-09-11	80	$86.77	$43.83	-49.5%	HOLD
2026-09-10	80	$86.18	$43.83	-49.1%	HOLD
2026-09-09	80	$86.72	$43.83	-49.5%	HOLD
2026-09-08	80	$89.90	$43.83	-51.2%	HOLD
2026-09-07	80	$89.90	$43.83	-51.2%	HOLD
2026-09-04	80	$89.78	$43.83	-51.2%	HOLD
2026-09-03	80	$90.82	$43.83	-51.7%	HOLD
2026-09-02	80	$90.74	$43.83	-51.7%	HOLD
2026-09-01	80	$90.75	$43.83	-51.7%	HOLD
2026-08-31	80	$90.21	$43.83	-51.4%	HOLD
2026-08-28	80	$89.95	$43.83	-51.3%	HOLD
2026-08-27	80	$90.78	$43.83	-51.7%	HOLD
2026-08-26	80	$90.87	$43.83	-51.8%	HOLD
2026-08-25	80	$90.50	$43.83	-51.6%	HOLD
2026-08-24	80	$89.79	$43.83	-51.2%	HOLD
2026-08-21	80	$89.83	$43.83	-51.2%	HOLD
2026-08-20	80	$92.28	$43.83	-52.5%	HOLD
2026-08-19	80	$90.98	$43.83	-51.8%	HOLD
2026-08-18	80	$91.60	$43.83	-52.2%	HOLD
2026-08-17	80	$91.60	$43.83	-52.2%	HOLD
2026-08-14	80	$92.56	$43.83	-52.6%	HOLD
2026-08-13	80	$93.05	$43.83	-52.9%	HOLD
2026-08-12	80	$93.66	$43.83	-53.2%	HOLD
2026-08-11	80	$92.03	$43.83	-52.4%	HOLD
2026-08-10	80	$89.72	$43.83	-51.1%	HOLD
2026-08-07	80	$89.32	$43.83	-50.9%	HOLD
2026-08-06	80	$88.97	$43.83	-50.7%	HOLD
2026-08-05	80	$89.60	$43.83	-51.1%	HOLD
2026-08-04	80	$86.07	$43.83	-49.1%	HOLD
2026-08-03	80	$86.07	$43.83	-49.1%	HOLD
2026-07-31	80	$86.92	$43.83	-49.6%	HOLD
2026-07-30	80	$85.76	$43.83	-48.9%	HOLD
2026-07-29	80	$83.04	$43.83	-47.2%	HOLD
2026-07-28	80	$83.04	$43.83	-47.2%	HOLD
2026-07-27	80	$83.82	$43.83	-47.7%	HOLD
2026-07-24	80	$83.82	$43.83	-47.7%	HOLD
2026-07-23	80	$84.37	$44.00	-47.9%	HOLD
2026-07-22	80	$84.55	$44.00	-48.0%	HOLD
2026-07-21	80	$85.00	$44.00	-48.2%	HOLD
2026-07-20	80	$85.73	$44.00	-48.7%	HOLD
2026-07-17	80	$87.84	$44.00	-49.9%	HOLD
2026-07-16	80	$87.27	$44.00	-49.6%	HOLD
2026-07-15	80	$91.79	$44.00	-52.1%	HOLD
2026-07-14	80	$91.79	$44.00	-52.1%	HOLD
2026-07-13	80	$92.21	$44.00	-52.3%	HOLD
2026-07-10	80	$91.33	$44.00	-51.8%	HOLD
2026-07-09	80	$93.64	$44.00	-53.0%	HOLD
2026-07-08	80	$94.82	$44.00	-53.6%	HOLD
2026-07-07	80	$95.18	$44.00	-53.8%	HOLD
2026-07-06	80	$94.37	$44.00	-53.4%	HOLD
2026-07-03	80	$94.37	$44.00	-53.4%	HOLD
2026-07-02	80	$91.99	$44.00	-52.2%	HOLD
2026-06-25	80	$89.66	$43.42	-51.6%	STRONG SELL
2026-06-23	80	$86.95	$43.42	-50.1%	STRONG SELL

Date

Quality

Price

Value

MoS

Rating

2026-10-28

$90.82

$43.63

-52.0%

HOLD

2026-10-27

$90.56

$43.63

-51.8%

HOLD

2026-10-26

$89.07

$43.63

-51.0%

HOLD

2026-10-23

$90.09

$43.63

-51.6%

HOLD

2026-10-22

$88.40

$43.63

-50.6%

HOLD

2026-10-21

$88.29

$43.63

-50.6%

HOLD

2026-10-20

$87.22

$43.63

-50.0%

HOLD

2026-10-19

$86.60

$43.63

-49.6%

HOLD

2026-10-16

$88.10

$43.63

-50.5%

HOLD

2026-10-15

$86.45

$43.63

-49.5%

HOLD

2026-10-14

$85.27

$43.63

-48.8%

HOLD

2026-10-13

$86.39

$43.63

-49.5%

HOLD

2026-10-12

$85.21

$43.63

-48.8%

HOLD

2026-10-09

$84.24

$43.63

-48.2%

HOLD

2026-10-08

$85.78

$43.63

-49.1%

HOLD

2026-10-07

$86.48

$43.63

-49.5%

HOLD

2026-10-06

$87.23

$43.63

-50.0%

HOLD

2026-10-05

$85.15

$43.63

-48.8%

HOLD

2026-10-02

$85.19

$43.63

-48.8%

HOLD

2026-10-01

$86.32

$43.63

-49.5%

HOLD

2026-09-30

$88.08

$43.63

-50.5%

HOLD

2026-09-29

$86.83

$43.63

-49.8%

HOLD

2026-09-28

$86.29

$43.63

-49.4%

HOLD

2026-09-25

$85.73

$43.63

-49.1%

HOLD

2026-09-24

$86.82

$43.63

-49.7%

HOLD

2026-09-23

$88.34

$43.63

-50.6%

HOLD

2026-09-22

$88.34

$43.63

-50.6%

HOLD

2026-09-21

$88.26

$43.63

-50.6%

HOLD

2026-09-18

$88.25

$43.63

-50.6%

HOLD

2026-09-17

$89.28

$43.63

-51.1%

HOLD

2026-09-16

$85.74

$43.63

-49.1%

HOLD

2026-09-15

$85.52

$43.63

-49.0%

HOLD

2026-09-14

$84.37

$43.63

-48.3%

HOLD

2026-09-11

$86.77

$43.83

-49.5%

HOLD

2026-09-10

$86.18

$43.83

-49.1%

HOLD

2026-09-09

$86.72

$43.83

-49.5%

HOLD

2026-09-08

$89.90

$43.83

-51.2%

HOLD

2026-09-07

$89.90

$43.83

-51.2%

HOLD

2026-09-04

$89.78

$43.83

-51.2%

HOLD

2026-09-03

$90.82

$43.83

-51.7%

HOLD

2026-09-02

$90.74

$43.83

-51.7%

HOLD

2026-09-01

$90.75

$43.83

-51.7%

HOLD

2026-08-31

$90.21

$43.83

-51.4%

HOLD

2026-08-28

$89.95

$43.83

-51.3%

HOLD

2026-08-27

$90.78

$43.83

-51.7%

HOLD

2026-08-26

$90.87

$43.83

-51.8%

HOLD

2026-08-25

$90.50

$43.83

-51.6%

HOLD

2026-08-24

$89.79

$43.83

-51.2%

HOLD

2026-08-21

$89.83

$43.83

-51.2%

HOLD

2026-08-20

$92.28

$43.83

-52.5%

HOLD

2026-08-19

$90.98

$43.83

-51.8%

HOLD

2026-08-18

$91.60

$43.83

-52.2%

HOLD

2026-08-17

$91.60

$43.83

-52.2%

HOLD

2026-08-14

$92.56

$43.83

-52.6%

HOLD

2026-08-13

$93.05

$43.83

-52.9%

HOLD

2026-08-12

$93.66

$43.83

-53.2%

HOLD

2026-08-11

$92.03

$43.83

-52.4%

HOLD

2026-08-10

$89.72

$43.83

-51.1%

HOLD

2026-08-07

$89.32

$43.83

-50.9%

HOLD

2026-08-06

$88.97

$43.83

-50.7%

HOLD

2026-08-05

$89.60

$43.83

-51.1%

HOLD

2026-08-04

$86.07

$43.83

-49.1%

HOLD

2026-08-03

$86.07

$43.83

-49.1%

HOLD

2026-07-31

$86.92

$43.83

-49.6%

HOLD

2026-07-30

$85.76

$43.83

-48.9%

HOLD

2026-07-29

$83.04

$43.83

-47.2%

HOLD

2026-07-28

$83.04

$43.83

-47.2%

HOLD

2026-07-27

$83.82

$43.83

-47.7%

HOLD

2026-07-24

$83.82

$43.83

-47.7%

HOLD

2026-07-23

$84.37

$44.00

-47.9%

HOLD

2026-07-22

$84.55

$44.00

-48.0%

HOLD

2026-07-21

$85.00

$44.00

-48.2%

HOLD

2026-07-20

$85.73

$44.00

-48.7%

HOLD

2026-07-17

$87.84

$44.00

-49.9%

HOLD

2026-07-16

$87.27

$44.00

-49.6%

HOLD

2026-07-15

$91.79

$44.00

-52.1%

HOLD

2026-07-14

$91.79

$44.00

-52.1%

HOLD

2026-07-13

$92.21

$44.00

-52.3%

HOLD

2026-07-10

$91.33

$44.00

-51.8%

HOLD

2026-07-09

$93.64

$44.00

-53.0%

HOLD

2026-07-08

$94.82

$44.00

-53.6%

HOLD

2026-07-07

$95.18

$44.00

-53.8%

HOLD

2026-07-06

$94.37

$44.00

-53.4%

HOLD

2026-07-03

$94.37

$44.00

-53.4%

HOLD

2026-07-02

$91.99

$44.00

-52.2%

HOLD

2026-06-25

$89.66

$43.42

-51.6%

STRONG SELL

2026-06-23

$86.95

$43.42

-50.1%

STRONG SELL

The business

Quality gate · 80/100

Moat & management

Owner-earnings inputs

Projected owner earnings

Key risks

Catalysts

Recent news

History