Edwards Lifesciences Corp (EW) is overvalued and Koninklijke Philips NV ADR (PHG) is overvalued.
Both trade above our estimate of their intrinsic value. PHG is the closer of the two: -37%, 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 8.1% (average of 3 methods) values the shares at $18.23; the price of $24.97 is 37% above that value, and 79% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
| Metric | EW | PHG |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $88.78 | $24.97 |
| Intrinsic value | $42.32 | $18.23 |
| Margin of safety | -110% | -37% |
| Leak Score | 50/100 (10/12) | 27/100 (3/12) |
| Market cap | $51.2B | $24.4B |
| Revenue growth, 5 years | 6.7% | 0.4% |
| Operating margin | 28.5% | 9.1% |
| Net margin | 15.0% | 6.3% |
| Return on equity | 9.3% | 10.2% |
| Debt to equity | 0.07 | 0.65 |
| P/E | 52.7x | 18.6x |
| Forward P/E | 26.2x | 13.1x |
| P/B | 4.8x | 1.9x |
| Dividend yield | — | 4.0% |