Edwards Lifesciences Corp (EW) is overvalued and GE HealthCare Technologies Inc (GEHC) is undervalued.
Against our estimates of intrinsic value, GEHC trades at the wider discount: a margin of safety of +29%, against -110% for EW.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 9.1% (average of 3 methods) values the shares at $93.41; the price of $66.27 is 29% below that value, and 75% of that value comes from beyond year five.
Leak Score 63/100 on 5 of 12 signals
| Metric | EW | GEHC |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $88.78 | $66.27 |
| Intrinsic value | $42.32 | $93.41 |
| Margin of safety | -110% | +29% |
| Leak Score | 50/100 (10/12) | 63/100 (5/12) |
| Market cap | $51.2B | $29.9B |
| Revenue growth, 5 years | 6.7% | 3.7% |
| Operating margin | 28.5% | 13.7% |
| Net margin | 15.0% | 9.3% |
| Return on equity | 9.3% | 19.2% |
| Debt to equity | 0.07 | 0.96 |
| P/E | 52.7x | 15.2x |
| Forward P/E | 26.2x | 12.2x |
| P/B | 4.8x | 2.7x |
| Dividend yield | — | 0.2% |