Labcorp Holdings Inc. (LH) 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

-9.7%

$320.96

vs $355.52 price

Levered DCF

$345.15

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.5

Safe zone

Rating

B+

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	23.8×	25.8×	47.35×	14.41×	10.98×	10.94×	17.28×	12.46×
P/B	2.42×	2.39×	2.51×	1.83×	2.54×	1.8×	1.88×	1.58×
P/S	1.5×	1.48×	1.63×	1.55×	1.99×	1.22×	1.23×	0.97×
EV / EBITDA	13.69×	13.8×	18.69×	12.46×	8.42×	7.36×	10.92×	8.06×
Gross margin	26.8%	27.9%	27.7%	31.3%	38.0%	35.4%	28.1%	28.0%
Operating margin	10.9%	8.4%	6.0%	12.1%	23.2%	17.5%	11.5%	11.7%
Net margin	6.3%	5.7%	3.4%	10.8%	18.1%	11.1%	7.1%	7.8%
Current ratio	1.42×	1.44×	1.17×	1.5×	1.92×	1.66×	1.12×	1.51×
Debt / equity	0.84×	0.9×	0.76×	0.62×	0.62×	0.72×	0.94×	0.87×
Interest coverage	6.77×	5.22×	3.64×	7.99×	14.39×	11.79×	5.53×	5.43×
Dividend yield	1.2%	1.3%	1.3%	1.1%	0.0%	0.0%	0.0%	0.0%
Payout ratio	27.5%	32.6%	60.8%	15.3%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.2%	9.3%	5.3%	12.7%	23.1%	16.5%	10.9%	12.7%
Return on invested capital	7.4%	5.2%	3.3%	6.6%	13.0%	9.8%	6.2%	6.4%
Return on assets	4.8%	4.1%	2.5%	6.3%	11.7%	7.8%	4.6%	5.5%
Free cash flow yield	5.8%	5.7%	4.4%	8.0%	10.1%	10.3%	7.3%	8.4%
Earnings yield	4.2%	3.9%	2.1%	6.9%	9.1%	9.1%	5.8%	8.0%
Enterprise value	$27.5B	$25B	$25.2B	$24.4B	$31B	$22.4B	$21B	$16.6B
Net debt / EBITDA	3.31×	3.18×	4.01×	3.03×	1.32×	1.78×	3.52×	2.73×
Cash conversion cycle (days)	48	44	48	44	73	70	47	42