LH
Labcorp Holdings Inc.
$312.15
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 98.9% above fair value
You pay
$312.15
Bear
$125.52
Fair
$156.90
Bull
$188.28
Bear
$125.52
-59.8%
$10.46 × 12x P/E
Fair
$156.90
-49.7%
$10.46 × 15x P/E
Bull
$188.28
-39.7%
$10.46 × 18x P/E
Adjust Assumptions
15.0x
10.46$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
29.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (35 analysts)
$346.57
Divergence from AlphaVal
55%
Summary
Applying a 15x P/E to adjusted EPS of $10.46, the base-case value is $156.90 per share.
Warnings
Wall Street's average price target is $346.57 (from 35 analysts). Our estimate is 55% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples