Is Edwards Lifesciences Corp. overvalued or undervalued?

As of 15 July 2024, the valuation grade for Edwards Lifesciences Corp. has moved from expensive to fair, indicating that the company is now fairly valued. The current P/E ratio stands at 30, which is slightly above the industry average of approximately 28.68. Additionally, the EV to EBITDA ratio is 26.46, which is higher than peers like Abbott Laboratories at 25.60 and Medtronic Plc at 15.23, suggesting that while Edwards is fairly valued, it may still be on the higher end compared to some competitors.
In terms of key financial metrics, Edwards Lifesciences has a ROCE of 21.76% and a ROE of 15.23%, both of which are strong indicators of profitability. Despite its fair valuation, the company has underperformed over the past year with a return of -17.14% compared to the S&P 500's 10.26%, highlighting potential concerns regarding growth or market sentiment. Overall, while Edwards Lifesciences is fairly valued, its performance relative to peers and the broader market suggests caution for potential investors.