LH
Labcorp Holdings Inc.
$259.93
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 8.4% above fair value
You pay
$259.93
Bear
$191.78
Fair
$239.72
Bull
$287.67
Bear
$191.78
-26.2%
$13.94 × 12x P/E
Fair
$239.72
-7.8%
$13.94 × 15x P/E
Bull
$287.67
+10.7%
$13.94 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
18.7x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $311.33 from 35 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $239.72 per share.
Warnings
The company's reported profits differ from official accounting profits by 33%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $311.33 (from 35 analysts). Our estimate is 33% 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