Labcorp Holdings Inc.

HealthcareMedical - Diagnostics & ResearchNYSE

$255.08

Market Cap: $20.92B

Labcorp Holdings Inc. (LH) Valuation Summary

Updated Apr 22, 2026 22:17

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$189.76 – $862.08	$332.91	+22.1%
Growth Exit 10Y	$158.77 – $653.88	$266.28	-2.3%
EBITDA Exit 5Y	$206.34 – $460.09	$322.77	+18.4%
EBITDA Exit 10Y	$196.01 – $455.86	$307.24	+12.7%
▸ Trading Multiples
P/E	$225.14 – $325.04	$327.84	+20.3%
EV/EBITDA	$192.59 – $412.15	$249.67	-8.4%
EV/Revenue	$445.77 – $970.47	$643.56	+136.1%
▸ PEG
PEG Fair Value	$338.22 – $338.22	$338.22	+24.1%
▸ Earnings Power Value
Earnings Power Value	$119.22 – $215.18	$157.87	-42.1%
▸ Dividend Discount
Dividend Discount	$39.72 – $86.57	$56.00	-79.5%

Valuation History

DCF Analysis

Fair Value

$332.91

Market Price

$255.08

Upside / Downside

+30.5%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Labcorp Holdings Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 5.2% to -12.2% 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 65, DPO 33, DIO 19). At a 7.7% WACC with mid-year discounting, the terminal value (80% 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 $332.91 per share, suggesting LH is undervalued by 30.5% at the current price of $255.08.

FCFF Present Value Calculation

WACC

7.72%

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	1,884	1,975	2,074	2,227	1,955	2,004
(−) Net Interest	234	245	258	277	243	249
(+) D&A	464	479	494	521	549	563
EBITDA	2,582	2,699	2,826	3,024	2,747	2,815

(−) Tax	448	469	493	529	465	476
(−) CapEx	533	559	587	630	553	567
(−) ΔWC	266	107	117	180	-320	-328
Free Cash Flow (FCFF)	1,335	1,564	1,629	1,685	2,049	2,100

Terminal Value						40,265
WACC / Discount Rate	7.7%
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	1,286	1,399	1,353	1,299	1,466	27,767

Enterprise Value	34,570
Projection Period	6,803	19.7%
Terminal Value	27,767	80.3%

(−) Current Net Debt	6,672

Equity Value	27,898
(/) Outstanding Shares	84

Fair Price	$332.91

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.7%	$456	$516	$596	$704	$862
6.7%	$351	$387	$433	$491	$567
7.7%	$280	$304	$333	$368	$412
8.7%	$228	$245	$265	$288	$316
9.7%	$190	$202	$216	$233	$251

Current price: $255.08. Green = undervalued, Red = overvalued.

Fair Value

$266.28

Market Price

$255.08

Upside / Downside

+4.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Labcorp Holdings 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 5.2% to 2.8% 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 65, DPO 33, DIO 19). At a 7.7% WACC with mid-year discounting, the terminal value (59% 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 $266.28 per share, suggesting LH is fairly valued by 4.4% at the current price of $255.08.

FCFF Present Value Calculation

WACC

7.72%

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	1,884	1,975	2,074	2,227	1,955	1,989	2,030	2,075	2,127	2,186	2,241
(−) Net Interest	234	245	258	277	243	247	252	258	264	272	278
(+) D&A	464	479	494	521	549	573	579	582	582	576	591
EBITDA	2,582	2,699	2,826	3,024	2,747	2,809	2,860	2,915	2,973	3,034	3,109

(−) Tax	448	469	493	529	465	473	482	493	506	519	532
(−) CapEx	533	559	587	630	553	563	575	587	602	619	634
(−) ΔWC	266	107	117	180	-320	41	47	54	61	69	71
Free Cash Flow (FCFF)	1,335	1,564	1,629	1,685	2,049	1,733	1,756	1,780	1,804	1,826	1,872

Terminal Value											35,890
WACC / Discount Rate	7.7%
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	1,286	1,399	1,353	1,299	1,466	1,151	1,083	1,019	959	901	17,067

Enterprise Value	28,986
Projection Period	11,918	41.1%
Terminal Value	17,067	58.9%

(−) Current Net Debt	6,672

Equity Value	22,314
(/) Outstanding Shares	84

Fair Price	$266.28

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.7%	$380	$420	$474	$547	$654
6.7%	$292	$316	$346	$383	$432
7.7%	$234	$248	$266	$288	$315
8.7%	$191	$201	$213	$226	$242
9.7%	$159	$166	$174	$183	$193

Current price: $255.08. Green = undervalued, Red = overvalued.

Fair Value

$322.69

Market Price

$255.08

Upside / Downside

+26.5%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Labcorp Holdings Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 5.2% to -12.2% 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 65, DPO 33, DIO 19). At a 7.7% WACC with mid-year discounting, the terminal value (80% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 13.9x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $322.77 per share, suggesting LH is undervalued by 26.5% at the current price of $255.08.

FCFF Present Value Calculation

WACC

7.72%

3% – 20%

EV/EBITDA Exit Multiple

13.86x

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	1,884	1,975	2,074	2,227	1,955	2,004
(−) Net Interest	234	245	258	277	243	249
(+) D&A	464	479	494	521	549	563
EBITDA	2,582	2,699	2,826	3,024	2,747	2,815

(−) Tax	448	469	493	529	465	—
(−) CapEx	533	559	587	630	553	—
(−) ΔWC	266	107	117	180	-320	—
Free Cash Flow (FCF)	1,335	1,564	1,629	1,685	2,049	—

Peers' EBITDA Multiple						13.9x
Terminal Value						39,022
WACC / Discount Rate	7.72%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	1,286	1,399	1,353	1,299	1,466	26,909

Enterprise Value	33,713
Projection Period	6,803	20.2%
Terminal Value	26,909	79.8%

(−) Current Net Debt	6,672
Equity Value	27,041
(÷) Outstanding Shares	84M
Fair Price	$323	+26.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	9.9x	11.9x	13.9x	15.9x	17.9x
5.7%	$257	$307	$358	$409	$460
6.7%	$243	$292	$340	$389	$437
7.7%	$230	$276	$323	$369	$415
8.7%	$218	$262	$306	$351	$395
9.7%	$206	$249	$291	$333	$375

Current price: $255.08. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$307.18

Market Price

$255.08

Upside / Downside

+20.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Labcorp Holdings 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 5.2% to 2.8% 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 65, DPO 33, DIO 19). At a 7.7% WACC with mid-year discounting, the terminal value (63% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 13.9x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $307.24 per share, suggesting LH is undervalued by 20.4% at the current price of $255.08.

FCFF Present Value Calculation

WACC

7.72%

3% – 20%

EV/EBITDA Exit Multiple

13.86x

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	1,884	1,975	2,074	2,227	1,955	1,989	2,030	2,075	2,127	2,186	2,241
(−) Net Interest	234	245	258	277	243	247	252	258	264	272	278
(+) D&A	464	479	494	521	549	573	579	582	582	576	591
EBITDA	2,582	2,699	2,826	3,024	2,747	2,809	2,860	2,915	2,973	3,034	3,109

(−) Tax	448	469	493	529	465	473	482	493	506	519	—
(−) CapEx	533	559	587	630	553	563	575	587	602	619	—
(−) ΔWC	266	107	117	180	-320	41	47	54	61	69	—
Free Cash Flow (FCF)	1,335	1,564	1,629	1,685	2,049	1,733	1,756	1,780	1,804	1,826	—

Peers' EBITDA Multiple											13.9x
Terminal Value											43,097
WACC / Discount Rate	7.72%

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	1,286	1,399	1,353	1,299	1,466	1,151	1,083	1,019	959	901	20,495

Enterprise Value	32,413
Projection Period	11,918	36.8%
Terminal Value	20,495	63.2%

(−) Current Net Debt	6,672
Equity Value	25,741
(÷) Outstanding Shares	84M
Fair Price	$307	+20.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	9.9x	11.9x	13.9x	15.9x	17.9x
5.7%	$286	$328	$371	$413	$456
6.7%	$260	$299	$337	$376	$415
7.7%	$237	$272	$307	$343	$378
8.7%	$215	$248	$280	$312	$344
9.7%	$196	$225	$255	$284	$313

Current price: $255.08. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$329.59

Market Price

$255.08

Upside / Downside

+29.2%

Verdict

Undervalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Labcorp Holdings Inc. (LH) has a fair value of $329.59 based on 10 comparable companies in the Medical - Diagnostics & Research industry.

P/E Valuation — Medical - Diagnostics & Research

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Labcorp Holdings Inc.LH	21,376	24.4x	14.2x
Biogen Inc.BIIB	27,894	21.5x	12.3x
United Therapeutics CorporationUTHR	25,170	20.6x	19.6x
DexCom, Inc.DXCM	24,468	30.3x	25.5x
Quest Diagnostics IncorporatedDGX	22,580	23.3x	20.8x
STERIS plcSTE	21,941	36.1x	26.0x
Illumina, Inc.ILMN	19,953	24.0x	25.5x
Waters CorporationWAT	19,899	31.1x	23.2x
West Pharmaceutical Services, Inc.WST	19,761	40.4x	34.2x
Incyte CorporationINCY	19,253	15.1x	13.2x
Zimmer Biomet Holdings, Inc.ZBH	18,203	26.2x	11.1x
Industry Median		25.1x	22.0x
(*) Profit after tax		877	1,510
Equity Value		21,999	33,241
(/) Outstanding shares		84	84
Fair Price		$263	$397

Selected Fair Value (avg of trailing + forward)

$329.59

+29.2%

Fair Value

$249.89

Market Price

$255.08

Upside / Downside

-2.0%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Labcorp Holdings Inc. (LH) has a fair value of $249.89 based on 10 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
Labcorp Holdings Inc.LH	21,376	13.9x	13.2x
Biogen Inc.BIIB	27,894	10.3x	10.5x
United Therapeutics CorporationUTHR	25,170	13.0x	12.5x
DexCom, Inc.DXCM	24,468	21.4x	19.1x
Quest Diagnostics IncorporatedDGX	22,580	13.3x	13.3x
STERIS plcSTE	21,941	17.6x	17.7x
Illumina, Inc.ILMN	19,953	14.5x	13.9x
Waters CorporationWAT	19,899	20.5x	10.1x
West Pharmaceutical Services, Inc.WST	19,761	26.8x	25.3x
Incyte CorporationINCY	19,253	9.2x	8.5x
Zimmer Biomet Holdings, Inc.ZBH	18,203	11.3x	10.9x
Industry Median		13.9x	12.9x
(*) EBITDA		2,013	2,119
= Enterprise Value		27,904	27,321
(-) Net Debt		6,672	6,672
Equity Value		21,232	20,649
(/) Outstanding shares		84	84
Fair Price		$253	$246

Selected Fair Value (avg of trailing + forward)

$249.89

-2.0%

Fair Value

$644.01

Market Price

$255.08

Upside / Downside

+152.5%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Labcorp Holdings Inc. (LH) has a fair value of $644.01 based on 10 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
Labcorp Holdings Inc.LH	21,376	2.0x	1.9x
Biogen Inc.BIIB	27,894	3.2x	3.3x
United Therapeutics CorporationUTHR	25,170	7.4x	7.1x
DexCom, Inc.DXCM	24,468	5.3x	4.8x
Quest Diagnostics IncorporatedDGX	22,580	2.6x	2.6x
STERIS plcSTE	21,941	4.4x	4.4x
Illumina, Inc.ILMN	19,953	4.9x	4.7x
Waters CorporationWAT	19,899	6.5x	3.2x
West Pharmaceutical Services, Inc.WST	19,761	6.3x	6.0x
Incyte CorporationINCY	19,253	3.2x	2.9x
Zimmer Biomet Holdings, Inc.ZBH	18,203	3.1x	2.9x
Industry Median		4.6x	3.9x
(*) Revenue		13,952	14,692
= Enterprise Value		64,510	56,769
(-) Net Debt		6,672	6,672
Equity Value		57,838	50,097
(/) Outstanding shares		84	84
Fair Price		$690	$598

Selected Fair Value (avg of trailing + forward)

$644.01

+152.5%

PEG Fair Value

Fair Value

$338.22

Market Price

$255.08

Upside / Downside

+32.6%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 18.9% plus 1.1% dividend yield, the company has a fair value of $338.22 based on NTM EPS (FY2026) of $17.85. The current PEG ratio is 0.81.

PEG Ratio

0.81Undervalued

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 15.3 ÷ (17.9% + 1.1%) = 0.81

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG highly applicable

PEG is most informative for high-growth companies — the PEG sweet spot.

Fair Value Calculation

EPS Growth RateForward	17.9%
Dividend Yield	+1.1%
Adjusted Growth (clamped 8–25%)	18.9%
Fair P/E	18.9x
NTM EPS (FY2026)	$17.85
Fair Value	$338.22

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$10.46	—	—
FY2026E	$17.85	+70.7%	14
FY2027E	$19.34	+8.3%	13
FY2028E	$21.05	+8.8%	11
FY2029E	$23.23	+10.3%	5
FY2030E	$23.80	+2.5%	5

5Y Forward EPS CAGR: 17.9%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$2.4B	$24.38	—
FY2022	$1.3B	$13.96	-42.7%
FY2023	$418.0M	$4.77	-65.8%
FY2024	$746.0M	$8.84	+85.3%
FY2025	$876.5M	$10.46	+18.3%

4Y Historical EPS CAGR: -19.1%

Earnings Power Value

Fair Value

$157.87

Market Price

$255.08

Upside / Downside

-38.1%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 7.7% and normalized earnings of $1.5B, the company has a fair value of $157.87 per share. The EPV range is $119.22 – $215.18 based on WACC sensitivity (6.2% – 9.2%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	1,536	1,536	1,536
(/) WACC	9.2%	7.7%	6.2%
Enterprise Value	16,662	19,902	24,704
(-) Net debt	6,672	6,672	6,672
Equity Value	9,991	13,230	18,032
(/) Outstanding shares	84	84	84
Fair Price	$119.22	$157.87	$215.18

Dividend Discount Model

Fair Value

$56.00

Market Price

$255.08

Upside / Downside

-78.0%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 9.4% and projected dividend growth of 9.0%, the fair value is $56.00 per share. The DDM range is $39.72 – $86.57 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$2.87

Dividend Yield

1.07%

Payout Ratio

27.5%

Dividend Coverage

3.64x

FCF Payout Ratio20.0%

DPS CAGR (3Y)10.5%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$2.87	27.5%	-0.3%
2024	$2.88	32.6%	-0.7%
2023	$2.90	60.8%	+36.1%
2022	$2.13	15.3%	—
2021	—	0.0%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$3.13	9.0%	0.9141	$2.86
2027	$3.41	9.0%	0.8355	$2.85
2028	$3.72	9.0%	0.7637	$2.84
2029	$4.05	9.0%	0.6981	$2.83
2030	$4.41	9.0%	0.6381	$2.81
Terminal Value	$4.52 DPS	2.5%		$41.81

PV of Projected Dividends$14.19

PV of Terminal Value$41.81

Fair Value per Share$56.00

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	7.0%	8.0%	9.0%	10.0%	11.0%
7.4%	$73	$76	$80	$83	$87
8.4%	$60	$63	$66	$69	$71
9.4%	$52	$54	$56	$58	$61
10.4%	$45	$47	$49	$51	$53
11.4%	$40	$41	$43	$45	$47

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.