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Edwards Lifesciences (FRA:EWL) GF Value Rank : 10 (As of Apr. 25, 2024)


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What is Edwards Lifesciences GF Value Rank?

Edwards Lifesciences has the GF Value Rank of 10.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Edwards Lifesciences's GF Value Rank

For the Medical Devices subindustry, Edwards Lifesciences's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Edwards Lifesciences's GF Value Rank Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Edwards Lifesciences's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Edwards Lifesciences's GF Value Rank falls into.


Edwards Lifesciences GF Value Rank Related Terms

Thank you for viewing the detailed overview of Edwards Lifesciences's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Edwards Lifesciences (FRA:EWL) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Edwards Lifesciences Corp (FRA:EWL) » Definitions » GF Value Rank
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Traded in Other Exchanges
EW:USA EW:Mexico 1EW:Italy EWL:Germany E1WL34:Brazil EWLS:Austria
Address
One Edwards Way, Irvine, CA, USA, 92614
Website
https://www.edwards.com
Spun off from Baxter International in 2000, Edwards Lifesciences designs, manufactures, and markets a range of medical devices and equipment for advanced stages of structural heart disease. It has established itself as a leader across key products, including surgical tissue heart valves, transcatheter valve technologies, surgical clips, catheters, and monitoring systems used to measure a patient's heart function during surgery. The firm derives about 55% of its total sales from outside the U.S.