Edwards LifesciencesXSWX:EW +0.37%97 Return-on-Tangible-Equity is 20.56% as of Mar. 2026, which is 43% below its 10-year median of 36.02. GuruFocus rates XSWX:EW with a GF Score™ of 97/100 and a GF Value™ of CHF75.73. The stock has 5 warning signs investors should review. Among 760 Medical Devices & Instruments companies, Edwards Lifesciences ranks better than 75.79% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Edwards Lifesciences's annualized net income for the quarter that ended in Mar. 2026 was CHF1,199 Mil. Edwards Lifesciences's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF5,831 Mil. Therefore, Edwards Lifesciences's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 20.56%.
The historical rank and industry rank for Edwards Lifesciences's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:EW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.82 Med: 36.02 Max: 68.71
Current: 14.85
During the past 13 years, Edwards Lifesciences's highest Return-on-Tangible-Equity was 68.71%. The lowest was 14.82%. And the median was 36.02%.
XSWX:EW's Return-on-Tangible-Equity is ranked better than 75.79% of 760
companies
in the Medical Devices & Instruments industry
Industry Median: 4.115
vs XSWX:EW: 14.85
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Edwards Lifesciences Return-on-Tangible-Equity Related Terms
Edwards Lifesciences Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Edwards Lifesciences's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:EW vs DXCM, GEHC, BSX: Return-on-Tangible-Equity Comparison
For the Medical Devices subindustry, Edwards Lifesciences's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Edwards Lifesciences's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Edwards Lifesciences's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 20.56% mean?
Edwards Lifesciences (XSWX:EW) has a Return-on-Tangible-Equity of 20.56% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Edwards Lifesciences and its competitors. This is 43% below median its historical median of 36.02. Over the past decade, Edwards Lifesciences' Return-on-Tangible-Equity has ranged from 14.82 to 68.71. According to the industry distribution chart, Edwards Lifesciences ranks #184 out of 760 companies in the Medical Devices & Instruments industry, placing it in the top 24.2%.
Is Edwards Lifesciences' Return-on-Tangible-Equity too high?
Edwards Lifesciences' current Return-on-Tangible-Equity of 20.56% is 43% below median its 10-year median of 36.02. Over the past 10 years, this metric has ranged from a low of 14.82 to a high of 68.71. The Medical Devices & Instruments industry median Return-on-Tangible-Equity is 4.12. Edwards Lifesciences' value of 20.56% is 399.6% above this industry median. Based on the distribution chart, Edwards Lifesciences ranks #184 out of 760 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Edwards Lifesciences has a GF Score™ of 97/100, reflecting its overall financial health beyond just this single metric.
How does Edwards Lifesciences' Return-on-Tangible-Equity compare to DXCM and GEHC?
According to the Medical Devices & Instruments industry distribution chart, Edwards Lifesciences ranks #184 out of 760 companies for Return-on-Tangible-Equity. This places Edwards Lifesciences in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.12. Edwards Lifesciences' value of 20.56% is 399.6% above this benchmark. Historically, Edwards Lifesciences' own Return-on-Tangible-Equity has ranged from 14.82 to 68.71 over the past decade. While the company's 10-year median is 36.02 vs. the industry median of 4.12, Edwards Lifesciences has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Medical Devices & Instruments company?
The median Return-on-Tangible-Equity among Medical Devices & Instruments companies is 4.12, based on 760 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Edwards Lifesciences's current Return-on-Tangible-Equity of 20.56% is 399.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Edwards Lifesciences and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Equity is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edwards Lifesciences's current Return-on-Tangible-Equity is 20.56%, which is 43% below median its own 10-year median of 36.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edwards Lifesciences stock overvalued right now?
Edwards Lifesciences (XSWX:EW) has a current Return-on-Tangible-Equity of 20.56%. The stock's GF Value™ is CHF75.73, compared to a current price of CHF72.91 — trading 3.7% below its estimated fair value. The current Return-on-Tangible-Equity is 20.56%, which is 43% below median its 10-year median of 36.02 and 399.6% above the Medical Devices & Instruments industry median of 4.12. Edwards Lifesciences' overall GF Score™ is 97/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Edwards Lifesciences (XSWX:EW), the current Return-on-Tangible-Equity is 20.56% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Edwards Lifesciences (XSWX:EW) Overvalued in 2026?
Based on GuruFocus' analysis, Edwards Lifesciences stock appears to be undervalued.
The current stock price of CHF72.91 is trading 3.7% below its estimated GF Value™ of CHF75.73.
Key valuation signals for XSWX:EW:
Return-on-Tangible-Equity: 20.56% (43% below median its 10-year median of 36.02)
GF Value™: CHF75.73 vs. price of CHF72.91 (3.7% below fair value)
Industry Position: 399.6% above the Medical Devices & Instruments median (#184 of 760)
No single metric tells the full story. See the XSWX:EW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 aortic valves, and transcatheter mitral and tricuspid valve technologies. The firm derives about 60% of its total sales from outside the US.
97GF Score
Get the complete analysis for XSWX:EW
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