Quest Diagnostics Incorporated (DGX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-22.0%

$194.95

vs $249.92 price

Levered DCF

$199.51

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.78

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	19.56×	19.34×	18.17×	19.27×	10.88×	11.16×	16.74×	15.39×
P/B	2.69×	2.47×	2.45×	3.08×	3.36×	2.36×	2.54×	2.17×
P/S	1.75×	1.7×	1.67×	1.84×	2×	1.69×	1.85×	1.5×
EV / EBITDA	11.74×	12.29×	11.69×	12.39×	8.08×	8.14×	11.69×	10.81×
Gross margin	31.9%	32.9%	33.2%	34.7%	39.0%	38.5%	34.8%	34.6%
Operating margin	14.5%	13.6%	13.6%	14.4%	22.1%	20.9%	15.9%	14.6%
Net margin	9.0%	8.8%	9.2%	9.6%	18.5%	15.2%	11.1%	9.8%
Current ratio	1.04×	1.1×	1.31×	1.22×	1.56×	1.72×	1.25×	0.94×
Debt / equity	0.96×	1.05×	0.87×	0.8×	0.74×	0.71×	0.96×	0.77×
Interest coverage	5.79×	5.96×	7.74×	9.65×	15.66×	11.87×	6.84×	6.51×
Dividend yield	1.8%	2.0%	2.0%	1.7%	1.4%	1.9%	2.0%	2.3%
Payout ratio	35.6%	38.0%	36.8%	32.2%	15.5%	20.8%	33.3%	36.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	13.8%	12.9%	13.5%	16.1%	31.0%	21.2%	15.2%	14.1%
Return on invested capital	8.4%	7.0%	7.7%	9.8%	15.3%	12.0%	8.1%	8.8%
Return on assets	6.1%	5.4%	6.1%	7.4%	14.7%	10.2%	6.7%	6.7%
Free cash flow yield	7.1%	5.4%	5.6%	7.2%	8.5%	9.9%	5.9%	7.2%
Earnings yield	5.2%	5.2%	5.5%	5.2%	9.2%	9.0%	6.0%	6.5%
Enterprise value	$25.8B	$23.3B	$20.3B	$22.5B	$25.5B	$19.6B	$18.5B	$15.2B
Net debt / EBITDA	2.96×	3.45×	2.78×	2.42×	1.23×	1.51×	2.66×	2.75×
Cash conversion cycle (days)	-22	43	37	37	40	45	40	40