Dexcom Inc (DXCM) is overvalued and Edwards Lifesciences Corp (EW) is overvalued.
Both trade above our estimate of their intrinsic value. DXCM is the closer of the two: -61%, against -110% for EW.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 11.4% (average of 3 methods) values the shares at $55.75; the price of $89.53 is 61% above that value, and 70% of that value comes from beyond year five.
Leak Score 68/100 on 9 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 | DXCM | EW |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $89.53 | $88.78 |
| Intrinsic value | $55.75 | $42.32 |
| Margin of safety | -61% | -110% |
| Leak Score | 68/100 (9/12) | 50/100 (10/12) |
| Market cap | $33.8B | $51.2B |
| Revenue growth, 5 years | 19.3% | 6.7% |
| Operating margin | 22.9% | 28.5% |
| Net margin | 20.1% | 15.0% |
| Return on equity | 38.5% | 9.3% |
| Debt to equity | 0.53 | 0.07 |
| P/E | 35.3x | 52.7x |
| Forward P/E | 28.7x | 26.2x |
| P/B | 12.9x | 4.8x |