LH
Labcorp Holdings Inc.
$296.88
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 23.8% above fair value
You pay
$296.88
Bear
$191.78
Fair
$239.72
Bull
$287.67
Bear
$191.78
-35.4%
$13.94 × 12x P/E
Fair
$239.72
-19.3%
$13.94 × 15x P/E
Bull
$287.67
-3.1%
$13.94 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
21.3x
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