Edwards Lifesciences Corp (EW) is overvalued and Stryker Corp (SYK) is overvalued.
Both trade above our estimate of their intrinsic value. SYK is the closer of the two: -35%, 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 8.7% (average of 3 methods) values the shares at $204.41; the price of $275.09 is 35% above that value, and 77% of that value comes from beyond year five.
Leak Score 65/100 on 10 of 12 signals
| Metric | EW | SYK |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $88.78 | $275.09 |
| Intrinsic value | $42.32 | $204.41 |
| Margin of safety | -110% | -35% |
| Leak Score | 50/100 (10/12) | 65/100 (10/12) |
| Market cap | $51.2B | $105.5B |
| Revenue growth, 5 years | 6.7% | 11.8% |
| Operating margin | 28.5% | 24.3% |
| Net margin | 15.0% | 14.4% |
| Return on equity | 9.3% | 16.5% |
| Debt to equity | 0.07 | 0.64 |
| P/E | 52.7x | 28.5x |
| Forward P/E | 26.2x | 16.4x |
| P/B | 4.8x | 4.4x |
| Dividend yield | — | 1.3% |