Charles River Laboratories International, Inc.

CRL

HealthcareMedical - Diagnostics & ResearchNYSE

$168.46

Market Cap: $8.11B

Charles River Laboratories International, Inc. (CRL) Valuation Summary

Updated Apr 23, 2026 22:31

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$66.52 – $374.13	$130.54	-22.2%
Growth Exit 10Y	$65.75 – $335.35	$122.74	-26.8%
EBITDA Exit 5Y	$172.40 – $340.24	$249.55	+48.8%
EBITDA Exit 10Y	$148.58 – $334.25	$228.33	+36.1%
▸ Trading Multiples
P/E	—	N/A	—
EV/EBITDA	$163.91 – $1,024.40	$277.04	+65.2%
EV/Revenue	$88.87 – $458.60	$237.57	+41.6%
▸ PEG
PEG Fair Value	—	N/A	—
▸ Earnings Power Value
Earnings Power Value	$55.09 – $110.25	$77.25	-53.9%
▸ Dividend Discount
Dividend Discount	—	N/A	—

Valuation History

DCF Analysis

Fair Value

$130.54

Market Price

$168.46

Upside / Downside

-22.5%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Charles River Laboratories International, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -1.7% to -1.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 67, DPO 25, DIO 40). At a 7.6% WACC with mid-year discounting, the terminal value (78% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $130.54 per share, suggesting CRL is overvalued by 22.5% at the current price of $168.46.

FCFF Present Value Calculation

WACC

7.63%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	570	587	611	631	621	636
(−) Net Interest	100	103	107	111	109	112
(+) D&A	265	272	262	255	267	274
EBITDA	935	962	980	997	996	1,021

(−) Tax	183	188	196	202	199	204
(−) CapEx	265	273	284	293	288	296
(−) ΔWC	-29	25	35	29	-16	-16
Free Cash Flow (FCFF)	516	476	465	472	525	538

Terminal Value						10,496
WACC / Discount Rate	7.6%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	498	426	387	365	377	7,268

Enterprise Value	9,322
Projection Period	2,053	22.0%
Terminal Value	7,268	78.0%

(−) Current Net Debt	2,852

Equity Value	6,470
(/) Outstanding Shares	50

Fair Price	$130.54

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.6%	$186	$213	$250	$300	$374
6.6%	$138	$155	$176	$202	$237
7.6%	$107	$118	$131	$146	$166
8.6%	$84	$91	$100	$111	$123
9.6%	$67	$72	$78	$86	$94

Current price: $168.46. Green = undervalued, Red = overvalued.

Fair Value

$122.74

Market Price

$168.46

Upside / Downside

-27.1%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Charles River Laboratories International, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -1.7% to 3.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 67, DPO 25, DIO 40). At a 7.6% WACC with mid-year discounting, the terminal value (60% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $122.74 per share, suggesting CRL is overvalued by 27.1% at the current price of $168.46.

FCFF Present Value Calculation

WACC

7.63%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	570	587	611	631	621	640	660	681	702	723	741
(−) Net Interest	100	103	107	111	109	112	116	119	123	127	130
(+) D&A	265	272	262	255	267	281	287	294	300	307	315
EBITDA	935	962	980	997	996	1,033	1,063	1,094	1,125	1,157	1,186

(−) Tax	183	188	196	202	199	205	212	218	225	232	237
(−) CapEx	265	273	284	293	288	297	307	316	326	336	344
(−) ΔWC	-29	25	35	29	-16	29	29	30	30	31	32
Free Cash Flow (FCFF)	516	476	465	472	525	502	516	530	544	558	572

Terminal Value											11,162
WACC / Discount Rate	7.6%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	498	426	387	365	377	335	320	305	291	278	5,353

Enterprise Value	8,935
Projection Period	3,583	40.1%
Terminal Value	5,353	59.9%

(−) Current Net Debt	2,852

Equity Value	6,084
(/) Outstanding Shares	50

Fair Price	$122.74

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.6%	$183	$205	$235	$276	$335
6.6%	$136	$149	$165	$185	$212
7.6%	$105	$113	$123	$134	$149
8.6%	$83	$88	$94	$102	$110
9.6%	$66	$69	$74	$79	$84

Current price: $168.46. Green = undervalued, Red = overvalued.

Fair Value

$249.55

Market Price

$168.46

Upside / Downside

+48.1%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Charles River Laboratories International, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -1.7% to -1.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 67, DPO 25, DIO 40). At a 7.6% WACC with mid-year discounting, the terminal value (87% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.6x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $249.55 per share, suggesting CRL is undervalued by 48.1% at the current price of $168.46.

FCFF Present Value Calculation

WACC

7.63%

3% – 20%

EV/EBITDA Exit Multiple

18.62x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	570	587	611	631	621	636
(−) Net Interest	100	103	107	111	109	112
(+) D&A	265	272	262	255	267	274
EBITDA	935	962	980	997	996	1,021

(−) Tax	183	188	196	202	199	—
(−) CapEx	265	273	284	293	288	—
(−) ΔWC	-29	25	35	29	-16	—
Free Cash Flow (FCF)	516	476	465	472	525	—

Peers' EBITDA Multiple						18.6x
Terminal Value						19,014
WACC / Discount Rate	7.63%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	498	426	387	365	377	13,167

Enterprise Value	15,220
Projection Period	2,053	13.5%
Terminal Value	13,167	86.5%

(−) Current Net Debt	2,852
Equity Value	12,369
(÷) Outstanding Shares	50M
Fair Price	$250	+48.1%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.6x	16.6x	18.6x	20.6x	22.6x
5.6%	$215	$246	$278	$309	$340
6.6%	$203	$233	$263	$293	$323
7.6%	$192	$221	$250	$278	$307
8.6%	$182	$209	$237	$264	$291
9.6%	$172	$198	$224	$250	$276

Current price: $168.46. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$228.33

Market Price

$168.46

Upside / Downside

+35.5%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Charles River Laboratories International, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -1.7% to 3.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 67, DPO 25, DIO 40). At a 7.6% WACC with mid-year discounting, the terminal value (75% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.6x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $228.33 per share, suggesting CRL is undervalued by 35.5% at the current price of $168.46.

FCFF Present Value Calculation

WACC

7.63%

3% – 20%

EV/EBITDA Exit Multiple

18.62x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	570	587	611	631	621	640	660	681	702	723	741
(−) Net Interest	100	103	107	111	109	112	116	119	123	127	130
(+) D&A	265	272	262	255	267	281	287	294	300	307	315
EBITDA	935	962	980	997	996	1,033	1,063	1,094	1,125	1,157	1,186

(−) Tax	183	188	196	202	199	205	212	218	225	232	—
(−) CapEx	265	273	284	293	288	297	307	316	326	336	—
(−) ΔWC	-29	25	35	29	-16	29	29	30	30	31	—
Free Cash Flow (FCF)	516	476	465	472	525	502	516	530	544	558	—

Peers' EBITDA Multiple											18.6x
Terminal Value											22,075
WACC / Discount Rate	7.63%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	498	426	387	365	377	335	320	305	291	278	10,586

Enterprise Value	14,169
Projection Period	3,583	25.3%
Terminal Value	10,586	74.7%

(−) Current Net Debt	2,852
Equity Value	11,317
(÷) Outstanding Shares	50M
Fair Price	$228	+35.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.6x	16.6x	18.6x	20.6x	22.6x
5.6%	$224	$251	$279	$307	$334
6.6%	$202	$227	$252	$278	$303
7.6%	$182	$205	$228	$251	$274
8.6%	$165	$186	$207	$227	$248
9.6%	$149	$168	$187	$206	$225

Current price: $168.46. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$274.34

Market Price

$168.46

Upside / Downside

+62.9%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Charles River Laboratories International, Inc. (CRL) has a fair value of $274.34 based on 7 comparable companies in the Medical - Diagnostics & Research industry.

EV/EBITDA Valuation — Medical - Diagnostics & Research

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Charles River Laboratories International, Inc.CRL	8,350	12.3x	12.7x
Penumbra, Inc.PEN	13,068	58.9x	59.8x
DaVita Inc.DVA	10,364	9.3x	9.4x
Revvity, Inc.RVTY	9,744	18.6x	17.8x
Baxter International Inc.BAX	9,504	22.9x	24.4x
Qiagen N.V.QGEN	7,825	12.0x	11.4x
Bio-Rad Laboratories, Inc.BIO	7,596	18.1x	18.1x
Avantor, Inc.AVTR	5,293	64.0x	64.6x
Industry Median		18.6x	18.1x
(*) EBITDA		911	881
= Enterprise Value		16,966	15,932
(-) Net Debt		2,852	2,852
Equity Value		14,114	13,080
(/) Outstanding shares		50	50
Fair Price		$285	$264

Selected Fair Value (avg of trailing + forward)

$274.34

+62.9%

Fair Value

$235.18

Market Price

$168.46

Upside / Downside

+39.6%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Charles River Laboratories International, Inc. (CRL) has a fair value of $235.18 based on 8 comparable companies in the Medical - Diagnostics & Research industry.

EV/Revenue Valuation — Medical - Diagnostics & Research

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Charles River Laboratories International, Inc.CRL	8,350	2.8x	2.9x
Penumbra, Inc.PEN	13,068	9.3x	9.5x
DaVita Inc.DVA	10,364	1.8x	1.8x
Revvity, Inc.RVTY	9,744	4.3x	4.1x
Baxter International Inc.BAX	9,504	1.6x	1.7x
Qiagen N.V.QGEN	7,825	4.1x	3.9x
Bio-Rad Laboratories, Inc.BIO	7,596	3.3x	3.3x
Caris Life Sciences, Inc.CAI	5,592	6.4x	5.1x
Avantor, Inc.AVTR	5,293	1.4x	1.4x
Industry Median		3.7x	3.6x
(*) Revenue		4,015	3,881
= Enterprise Value		14,980	14,037
(-) Net Debt		2,852	2,852
Equity Value		12,128	11,185
(/) Outstanding shares		50	50
Fair Price		$245	$226

Selected Fair Value (avg of trailing + forward)

$235.18

+39.6%

Earnings Power Value

Fair Value

$77.25

Market Price

$168.46

Upside / Downside

-54.1%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 7.6% and normalized earnings of $509.4M, the company has a fair value of $77.25 per share. The EPV range is $55.09 – $110.25 based on WACC sensitivity (6.1% – 9.1%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	509	509	509
(/) WACC	9.1%	7.6%	6.1%
Enterprise Value	5,582	6,680	8,316
(-) Net debt	2,852	2,852	2,852
Equity Value	2,731	3,829	5,464
(/) Outstanding shares	50	50	50
Fair Price	$55.09	$77.25	$110.25

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Charles River Laboratories International, Inc. (CRL) Valuation Summary

Updated Apr 23, 2026 22:31

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$66.52 – $374.13	$130.54	-22.2%
Growth Exit 10Y	$65.75 – $335.35	$122.74	-26.8%
EBITDA Exit 5Y	$172.40 – $340.24	$249.55	+48.8%
EBITDA Exit 10Y	$148.58 – $334.25	$228.33	+36.1%
▸ Trading Multiples
P/E	—	N/A	—
EV/EBITDA	$163.91 – $1,024.40	$277.04	+65.2%
EV/Revenue	$88.87 – $458.60	$237.57	+41.6%
▸ PEG
PEG Fair Value	—	N/A	—
▸ Earnings Power Value
Earnings Power Value	$55.09 – $110.25	$77.25	-53.9%
▸ Dividend Discount
Dividend Discount	—	N/A	—

Valuation History

DCF Analysis

Fair Value

$130.54

Market Price

$168.46

Upside / Downside

-22.5%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

7.63%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	570	587	611	631	621	636
(−) Net Interest	100	103	107	111	109	112
(+) D&A	265	272	262	255	267	274
EBITDA	935	962	980	997	996	1,021

(−) Tax	183	188	196	202	199	204
(−) CapEx	265	273	284	293	288	296
(−) ΔWC	-29	25	35	29	-16	-16
Free Cash Flow (FCFF)	516	476	465	472	525	538

Terminal Value						10,496
WACC / Discount Rate	7.6%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	498	426	387	365	377	7,268

Enterprise Value	9,322
Projection Period	2,053	22.0%
Terminal Value	7,268	78.0%

(−) Current Net Debt	2,852

Equity Value	6,470
(/) Outstanding Shares	50

Fair Price	$130.54

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.6%	$186	$213	$250	$300	$374
6.6%	$138	$155	$176	$202	$237
7.6%	$107	$118	$131	$146	$166
8.6%	$84	$91	$100	$111	$123
9.6%	$67	$72	$78	$86	$94

Current price: $168.46. Green = undervalued, Red = overvalued.

Fair Value

$122.74

Market Price

$168.46

Upside / Downside

-27.1%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

7.63%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	570	587	611	631	621	640	660	681	702	723	741
(−) Net Interest	100	103	107	111	109	112	116	119	123	127	130
(+) D&A	265	272	262	255	267	281	287	294	300	307	315
EBITDA	935	962	980	997	996	1,033	1,063	1,094	1,125	1,157	1,186

(−) Tax	183	188	196	202	199	205	212	218	225	232	237
(−) CapEx	265	273	284	293	288	297	307	316	326	336	344
(−) ΔWC	-29	25	35	29	-16	29	29	30	30	31	32
Free Cash Flow (FCFF)	516	476	465	472	525	502	516	530	544	558	572

Terminal Value											11,162
WACC / Discount Rate	7.6%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	498	426	387	365	377	335	320	305	291	278	5,353

Enterprise Value	8,935
Projection Period	3,583	40.1%
Terminal Value	5,353	59.9%

(−) Current Net Debt	2,852

Equity Value	6,084
(/) Outstanding Shares	50

Fair Price	$122.74

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.6%	$183	$205	$235	$276	$335
6.6%	$136	$149	$165	$185	$212
7.6%	$105	$113	$123	$134	$149
8.6%	$83	$88	$94	$102	$110
9.6%	$66	$69	$74	$79	$84

Current price: $168.46. Green = undervalued, Red = overvalued.

Fair Value

$249.55

Market Price

$168.46

Upside / Downside

+48.1%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Charles River Laboratories International, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -1.7% to -1.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 67, DPO 25, DIO 40). At a 7.6% WACC with mid-year discounting, the terminal value (87% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.6x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $249.55 per share, suggesting CRL is undervalued by 48.1% at the current price of $168.46.

FCFF Present Value Calculation

WACC

7.63%

3% – 20%

EV/EBITDA Exit Multiple

18.62x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	570	587	611	631	621	636
(−) Net Interest	100	103	107	111	109	112
(+) D&A	265	272	262	255	267	274
EBITDA	935	962	980	997	996	1,021

(−) Tax	183	188	196	202	199	—
(−) CapEx	265	273	284	293	288	—
(−) ΔWC	-29	25	35	29	-16	—
Free Cash Flow (FCF)	516	476	465	472	525	—

Peers' EBITDA Multiple						18.6x
Terminal Value						19,014
WACC / Discount Rate	7.63%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	498	426	387	365	377	13,167

Enterprise Value	15,220
Projection Period	2,053	13.5%
Terminal Value	13,167	86.5%

(−) Current Net Debt	2,852
Equity Value	12,369
(÷) Outstanding Shares	50M
Fair Price	$250	+48.1%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.6x	16.6x	18.6x	20.6x	22.6x
5.6%	$215	$246	$278	$309	$340
6.6%	$203	$233	$263	$293	$323
7.6%	$192	$221	$250	$278	$307
8.6%	$182	$209	$237	$264	$291
9.6%	$172	$198	$224	$250	$276

Current price: $168.46. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$228.33

Market Price

$168.46

Upside / Downside

+35.5%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Charles River Laboratories International, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -1.7% to 3.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 67, DPO 25, DIO 40). At a 7.6% WACC with mid-year discounting, the terminal value (75% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.6x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $228.33 per share, suggesting CRL is undervalued by 35.5% at the current price of $168.46.

FCFF Present Value Calculation

WACC

7.63%

3% – 20%

EV/EBITDA Exit Multiple

18.62x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	570	587	611	631	621	640	660	681	702	723	741
(−) Net Interest	100	103	107	111	109	112	116	119	123	127	130
(+) D&A	265	272	262	255	267	281	287	294	300	307	315
EBITDA	935	962	980	997	996	1,033	1,063	1,094	1,125	1,157	1,186

(−) Tax	183	188	196	202	199	205	212	218	225	232	—
(−) CapEx	265	273	284	293	288	297	307	316	326	336	—
(−) ΔWC	-29	25	35	29	-16	29	29	30	30	31	—
Free Cash Flow (FCF)	516	476	465	472	525	502	516	530	544	558	—

Peers' EBITDA Multiple											18.6x
Terminal Value											22,075
WACC / Discount Rate	7.63%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	498	426	387	365	377	335	320	305	291	278	10,586

Enterprise Value	14,169
Projection Period	3,583	25.3%
Terminal Value	10,586	74.7%

(−) Current Net Debt	2,852
Equity Value	11,317
(÷) Outstanding Shares	50M
Fair Price	$228	+35.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.6x	16.6x	18.6x	20.6x	22.6x
5.6%	$224	$251	$279	$307	$334
6.6%	$202	$227	$252	$278	$303
7.6%	$182	$205	$228	$251	$274
8.6%	$165	$186	$207	$227	$248
9.6%	$149	$168	$187	$206	$225

Current price: $168.46. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$274.34

Market Price

$168.46

Upside / Downside

+62.9%

Verdict

Undervalued

EV/EBITDA Valuation — Medical - Diagnostics & Research

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Charles River Laboratories International, Inc.CRL	8,350	12.3x	12.7x
Penumbra, Inc.PEN	13,068	58.9x	59.8x
DaVita Inc.DVA	10,364	9.3x	9.4x
Revvity, Inc.RVTY	9,744	18.6x	17.8x
Baxter International Inc.BAX	9,504	22.9x	24.4x
Qiagen N.V.QGEN	7,825	12.0x	11.4x
Bio-Rad Laboratories, Inc.BIO	7,596	18.1x	18.1x
Avantor, Inc.AVTR	5,293	64.0x	64.6x
Industry Median		18.6x	18.1x
(*) EBITDA		911	881
= Enterprise Value		16,966	15,932
(-) Net Debt		2,852	2,852
Equity Value		14,114	13,080
(/) Outstanding shares		50	50
Fair Price		$285	$264

Selected Fair Value (avg of trailing + forward)

$274.34

+62.9%

Fair Value

$235.18

Market Price

$168.46

Upside / Downside

+39.6%

Verdict

Undervalued

EV/Revenue Valuation — Medical - Diagnostics & Research

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Charles River Laboratories International, Inc.CRL	8,350	2.8x	2.9x
Penumbra, Inc.PEN	13,068	9.3x	9.5x
DaVita Inc.DVA	10,364	1.8x	1.8x
Revvity, Inc.RVTY	9,744	4.3x	4.1x
Baxter International Inc.BAX	9,504	1.6x	1.7x
Qiagen N.V.QGEN	7,825	4.1x	3.9x
Bio-Rad Laboratories, Inc.BIO	7,596	3.3x	3.3x
Caris Life Sciences, Inc.CAI	5,592	6.4x	5.1x
Avantor, Inc.AVTR	5,293	1.4x	1.4x
Industry Median		3.7x	3.6x
(*) Revenue		4,015	3,881
= Enterprise Value		14,980	14,037
(-) Net Debt		2,852	2,852
Equity Value		12,128	11,185
(/) Outstanding shares		50	50
Fair Price		$245	$226

Selected Fair Value (avg of trailing + forward)

$235.18

+39.6%

Earnings Power Value

Fair Value

$77.25

Market Price

$168.46

Upside / Downside

-54.1%

Verdict

Overvalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	509	509	509
(/) WACC	9.1%	7.6%	6.1%
Enterprise Value	5,582	6,680	8,316
(-) Net debt	2,852	2,852	2,852
Equity Value	2,731	3,829	5,464
(/) Outstanding shares	50	50	50
Fair Price	$55.09	$77.25	$110.25