Abbott Laboratories (ABT) is overvalued and Edwards Lifesciences Corp (EW) is overvalued.
Both trade above our estimate of their intrinsic value. ABT is the closer of the two: -48%, against -110% for EW.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.3% (average of 3 methods) values the shares at $70.00; the price of $103.69 is 48% above that value, and 78% of that value comes from beyond year five.
Leak Score 57/100 on 10 of 12 signals
Discounting its cash flows at 9.5% (average of 3 methods) values the shares at $42.32; the price of $88.78 is 110% above that value, and 75% of that value comes from beyond year five.
Leak Score 50/100 on 10 of 12 signals
| Metric | ABT | EW |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $103.69 | $88.78 |
| Intrinsic value | $70.00 | $42.32 |
| Margin of safety | -48% | -110% |
| Leak Score | 57/100 (10/12) | 50/100 (10/12) |
| Market cap | $179.4B | $51.2B |
| Revenue growth, 5 years | 5.1% | 6.7% |
| Operating margin | 16.4% | 28.5% |
| Net margin | 11.6% | 15.0% |
| Return on equity | 10.6% | 9.3% |
| Debt to equity | 0.64 | 0.07 |
| P/E | 33.5x | 52.7x |
| Forward P/E | 17.1x | 26.2x |
| P/B | 3.5x | 4.8x |
| Dividend yield | 2.5% | — |