Latest Ratios: P/E Ratio 52.0x · EV/EBITDA 29.3x · ROE 10.5%. (1999–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $54.8B | $49.9B | $44.4B | $46.5B | $46.6B | $81.8B | $57.6B | $49.5B | $32.7B | $24.3B | $20.4B |
| Enterprise Value | $52.6B | $47.7B | $42.0B | $46.0B | $46.5B | $81.6B | $57.2B | $49.0B | $32.6B | $24.6B | $20.3B |
| P/E Ratio → | 52.01 | 46.58 | 10.62 | 33.15 | 30.58 | 54.43 | 70.18 | 47.42 | 45.18 | 39.14 | 35.90 |
| P/S Ratio | 9.03 | 8.23 | 8.16 | 9.27 | 8.65 | 15.63 | 13.14 | 11.39 | 8.79 | 7.08 | 6.89 |
| P/B Ratio | 5.39 | 4.83 | 4.41 | 6.92 | 8.02 | 14.01 | 12.60 | 11.93 | 10.42 | 8.13 | 7.79 |
| P/FCF | 41.05 | 37.41 | 153.04 | 73.82 | 48.85 | 58.31 | 89.10 | 54.94 | 47.76 | 29.49 | 41.91 |
| P/OCF | 34.36 | 31.31 | 81.81 | 51.87 | 38.23 | 47.21 | 54.68 | 41.97 | 35.30 | 24.32 | 28.97 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.86 | 7.73 | 9.19 | 8.64 | 15.59 | 13.03 | 11.27 | 8.76 | 7.15 | 6.85 |
| EV / EBITDA | 29.32 | 26.61 | 27.39 | 29.27 | 24.87 | 46.01 | 39.93 | 37.34 | 27.87 | 22.48 | 22.89 |
| EV / EBIT | 32.13 | 37.48 | 26.80 | 33.11 | 25.92 | 47.25 | 60.88 | 41.05 | 41.01 | 23.20 | 26.86 |
| EV / FCF | — | 35.74 | 144.95 | 73.10 | 48.77 | 58.19 | 88.35 | 54.39 | 47.58 | 29.75 | 41.68 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 78.1% | 78.1% | 79.5% | 79.3% | 78.3% | 76.6% | 74.9% | 73.4% | 75.2% | 74.3% | 72.8% |
| Operating Margin | 27.0% | 27.0% | 25.3% | 28.5% | 31.6% | 30.8% | 29.5% | 27.6% | 29.3% | 29.4% | 27.5% |
| Net Profit Margin | 17.7% | 17.7% | 76.7% | 28.0% | 28.3% | 28.7% | 18.8% | 24.1% | 19.4% | 18.1% | 19.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.5% | 10.5% | 49.8% | 22.4% | 26.1% | 28.9% | 18.9% | 28.7% | 23.5% | 22.2% | 22.2% |
| ROA | 8.0% | 8.0% | 37.2% | 15.9% | 18.1% | 19.1% | 12.0% | 17.7% | 13.1% | 12.2% | 13.3% |
| ROIC | 15.5% | 15.5% | 14.8% | 17.8% | 22.4% | 24.8% | 25.1% | 26.9% | 26.3% | 26.5% | 25.0% |
| ROCE | 14.0% | 14.0% | 14.0% | 18.5% | 23.1% | 23.3% | 21.7% | 23.9% | 25.0% | 24.4% | 21.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.07 | 0.07 | 0.07 | 0.10 | 0.12 | 0.12 | 0.15 | 0.16 | 0.19 | 0.35 | 0.31 |
| Debt / EBITDA | 0.39 | 0.39 | 0.46 | 0.44 | 0.37 | 0.39 | 0.49 | 0.52 | 0.51 | 0.95 | 0.93 |
| Net Debt / Equity | — | -0.22 | -0.23 | -0.07 | -0.01 | -0.03 | -0.11 | -0.12 | -0.04 | 0.07 | -0.04 |
| Net Debt / EBITDA | -1.25 | -1.25 | -1.53 | -0.28 | -0.04 | -0.10 | -0.34 | -0.38 | -0.10 | 0.20 | -0.12 |
| Debt / FCF | — | -1.67 | -8.09 | -0.71 | -0.08 | -0.12 | -0.75 | -0.56 | -0.18 | 0.26 | -0.22 |
| Interest Coverage | — | — | 79.19 | 78.98 | 68.46 | 69.63 | 42.29 | 43.73 | 23.80 | 45.61 | 41.99 |
Net cash position: cash ($2.9B) exceeds total debt ($705M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.72 | 3.72 | 4.18 | 3.38 | 3.03 | 3.08 | 3.46 | 3.31 | 2.61 | 1.81 | 4.21 |
| Quick Ratio | 3.09 | 3.09 | 3.45 | 2.62 | 2.17 | 2.38 | 2.56 | 2.60 | 1.92 | 1.41 | 3.46 |
| Cash Ratio | 2.33 | 2.33 | 2.64 | 1.37 | 1.19 | 1.42 | 1.57 | 1.68 | 1.09 | 0.96 | 2.39 |
| Asset Turnover | — | 0.44 | 0.42 | 0.54 | 0.65 | 0.62 | 0.61 | 0.67 | 0.70 | 0.60 | 0.66 |
| Inventory Turnover | 1.18 | 1.18 | 1.03 | 1.15 | 1.33 | 1.69 | 1.37 | 1.80 | 1.52 | 1.59 | 2.03 |
| Days Sales Outstanding | — | 54.87 | 48.81 | 60.33 | 47.41 | 46.38 | 50.16 | 50.29 | 52.68 | 50.93 | 51.06 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.9% | 2.1% | 9.4% | 3.0% | 3.3% | 1.8% | 1.4% | 2.1% | 2.2% | 2.6% | 2.8% |
| FCF Yield | 2.4% | 2.7% | 0.7% | 1.4% | 2.0% | 1.7% | 1.1% | 1.8% | 2.1% | 3.4% | 2.4% |
| Buyback Yield | 1.6% | 1.8% | 2.6% | 1.9% | 3.7% | 0.6% | 1.1% | 0.5% | 2.4% | 3.1% | 3.2% |
| Total Shareholder Yield | 1.6% | 1.8% | 2.6% | 1.9% | 3.7% | 0.6% | 1.1% | 0.5% | 2.4% | 3.1% | 3.2% |
| Shares Outstanding | — | $586M | $599M | $609M | $624M | $631M | $632M | $637M | $641M | $648M | $653M |
Reimbursement and clinical adoption
According to current market data, EW trades at a forward P/E of 30.14, which, as reported in financial databases, represents a significant premium over diversified peers like Medtronic and Abbott, suggesting investors are pricing in superior long-term growth durability for its specialized structural heart product pipeline.
The elevated P/E multiple relative to the broader medical device sector implies that the market expects Edwards to maintain its dominant position in the TAVR market while successfully scaling the TMTT segment. Investors should monitor whether the company's growth trajectory justifies this premium, as any deceleration in procedure adoption could lead to a sharp valuation de-rating.
Based on the provided quarterly figures, EW's ROIC has remained in a narrow range between 3.3% and 4.6% over the last ten quarters, indicating that the company's aggressive reinvestment into R&D and clinical trials is currently suppressing the headline return on invested capital relative to historical peaks.
While the company maintains a high-margin business model, the persistent drag on ROIC suggests that the capital-intensive nature of developing and commercializing new transcatheter therapies is a significant headwind. This trend warrants further investigation into whether these investments will eventually yield the expected compounding returns once the TMTT pipeline reaches full commercial maturity.
As reported in recent financial statements, the company's cash conversion cycle has trended upward to 281 days in 2026Q1, primarily driven by an elevated days inventory outstanding metric that reflects the logistical complexities of maintaining consignment inventory across a global network of specialized hospital heart teams.
The significant increase in inventory days suggests that the company is carrying substantial stock to ensure product availability, which creates friction in cash generation. This operational reality implies that management must balance the need for high service levels with the potential for inventory obsolescence as newer valve iterations are introduced.
Based on reported figures, EW maintains a conservative capital structure with a debt-to-equity ratio of 0.07 as of 2026Q1, a level that remains remarkably stable and provides the company with significant financial flexibility to navigate potential regulatory shocks or sector-specific demand downturns without relying on external financing.
The minimal debt load is a structural advantage that allows the company to prioritize organic innovation and share repurchases even during periods of operational volatility. This fortress balance sheet appears to be a deliberate strategy to maintain independence and agility in a highly competitive and capital-intensive medical device landscape.
The P/E ratio is frequently misapplied to Edwards Lifesciences because it fails to account for the heavy, fully-expensed R&D spending that masks the company's true underlying economic earning power, as noted in recent institutional research regarding the firm's long-term innovation-led business model.
Because EW expenses all R&D costs immediately rather than capitalizing them, the P/E ratio tends to overstate the company's valuation relative to its long-term value creation. Analysts should instead consider using an adjusted EV/EBITDA or a cash-flow-based metric that accounts for the significant investment being made in the TMTT pipeline to better assess the company's true fundamental health.
Includes 30+ ratios · 27 years · Updated daily
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Quick answers to the most common questions about buying EW stock.
Edwards Lifesciences Corporation's current P/E ratio is 52.0x. The historical average is 33.7x. This places it at the 91th percentile of its historical range.
Edwards Lifesciences Corporation's current EV/EBITDA is 29.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 22.6x.
Edwards Lifesciences Corporation's return on equity (ROE) is 10.5%. The historical average is 17.7%.
Based on historical data, Edwards Lifesciences Corporation is trading at a P/E of 52.0x. This is at the 91th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Edwards Lifesciences Corporation has 78.1% gross margin and 27.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Edwards Lifesciences Corporation's Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.