---
title: Quest Diagnostics (DGX) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/dgx
ticker: DGX
as_of: 2026-10-17
sector: Healthcare
industry: Medical - Diagnostics & Research
---
# Quest Diagnostics (DGX)

Quest Diagnostics (DGX) closed at $235.00 on Oct 16, 2026, undervalued by 10% vs its model value of $260.67 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $235.00 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $260.67 |
| Price vs model | undervalued by 10% vs model |
| Range of that model | $141.17 – $687.66 |
| Market value | $25.9B |
| P/E (fiscal 2025) | 26.9 |
| Net margin (fiscal 2025) | 9.0% |
| Free cash flow (fiscal 2025) | $1.4B |
| Dividend yield (trailing twelve months) | 1.44% |
| Beta | 0.54 |
| Cost of capital (WACC) | 7.22% |
| Business classification | Mature & Stable (Low/slowing growth (~9% recent), Moderate margins (9% net margin), Pays dividends, Highly cyclical earnings, Strong FCF yield (5.2%)) |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 1.44% |
| Dividends per share, last 12 months | $3.38 |
| Dividends / free cash flow (fiscal 2025) | 26.0% |
| Raised | 14 years in a row |
| Growth over 5 years | 6.4% a year |
| Latest payment | $0.86, ex-date Oct 6, 2026, paid Oct 21, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Jan 18, 2022 | $2.48 |
| To Oct 3, 2022 | $2.64 |
| To Oct 5, 2023 | $2.79 |
| To Oct 4, 2024 | $2.96 |
| To Oct 3, 2025 | $3.15 |
| Trailing twelve months (to Oct 6, 2026) | $3.38 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $260.67 | $141.17 | $687.66 |
| DCF · Perpetuity growth · 10y | cross check | $274.22 | $154.92 | $705.58 |
| DCF · EBITDA exit · 5y | cross check | $277.29 | $186.62 | $384.21 |
| DCF · EBITDA exit · 10y | cross check | $288.13 | $190.27 | $418.93 |
| P/E · peers | cross check | $235.57 | $206.87 | $244.89 |
| P/E · own history | cross check | $183.82 | $155.89 | $222.34 |
| PEG | sanity check | $139.66 | $139.66 | $139.66 |
| EV/EBITDA · peers | cross check | $258.64 | $255.76 | $275.23 |
| EV/Revenue · peers | cross check | $511.40 | $227.50 | $738.90 |
| Earnings power value | cross check | $113.29 | $85.81 | $155.16 |
| Dividend discount | cross check | $79.01 | $51.45 | $145.64 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 5 open-market sales ($8.3M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 1, 2026 | WENTWORTH TIMOTHY C | Director | Grant / award | 135 | $0 |
| Sep 1, 2026 | Davis J. E. | CEO and President | Open-market sell (10b5-1 plan) | 10,000 | $2.4M |
| Aug 28, 2026 | PREVOZNIK MICHAEL E | SVP & General Counsel | Option/RSU exercise (10b5-1 plan) | 22,677 | $2.5M |
| Aug 28, 2026 | PREVOZNIK MICHAEL E | SVP & General Counsel | Open-market sell (10b5-1 plan) | 16,010 | $3.9M |
| Aug 28, 2026 | PREVOZNIK MICHAEL E | SVP & General Counsel | Open-market sell (10b5-1 plan) | 6,237 | $1.5M |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 6, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/1022079/000094787126000922/ss6908054_8k.htm |
| Jul 23, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1022079/000102207926000070/dgx-20260630.htm |
| Jul 23, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1022079/000102207926000067/dgx-20260723.htm |
| May 21, 2026 | 8-K | 5.07 Submission of Matters to a Shareholder Vote | https://www.sec.gov/Archives/edgar/data/1022079/000102207926000052/dgx-20260520.htm |
| May 8, 2026 | 8-K | 1.01 Entry into a Material Agreement; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1022079/000110465926057938/tm2613096d2_8k.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Christopher Davis | 2026-06-30 | 1,555,612 | $329.8M |
| Robert Olstein | 2026-03-31 | 35,800 | $7.0M |
| First Eagle | 2026-06-30 | 7,606 | $1.6M |
| Bridgewater | 2026-06-30 | 3,756 | $796,084 |

4 tracked managers in all.

## About

Quest Diagnostics Incorporated, founded in 1967 and headquartered in Secaucus, New Jersey, is a premier provider of diagnostic testing, information, and related services, serving clients both domestically and internationally. Its core business involves the development and provision of diverse diagnostic information services, such as routine, advanced clinical, and anatomic pathology testing. While primarily operating under the Quest Diagnostics brand, it also leverages specialized identities like AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum to reach a broad spectrum of clients. Its extensive client base includes patients, clinicians, hospitals, integrated delivery networks, health plans, employers, and other direct healthcare entities. Delivery of these services is facilitated through a robust network comprising laboratories, patient service centers, in-office phlebotomists, call…

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Source: https://sweetvaluelab.com/stocks/dgx (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.