DGX Valuation

Quest Diagnostics Inc

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181.640

+2.44(1.362%)1D

Overview
Forecast
Valuation
Earnings

DGX Relative Valuation

DGX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DGX is overvalued; if below, it's undervalued.

Historical Valuation

Quest Diagnostics Inc (DGX) is now in the Overvalued zone, suggesting that its current forward PE ratio of 18.18 is considered Overvalued compared with the five-year average of 15.04. The fair price of Quest Diagnostics Inc (DGX) is between 138.32 to 177.09 according to relative valuation methord. Compared to the current price of 181.64 USD , Quest Diagnostics Inc is Overvalued By 2.57%.

Relative Value

Fair Zone

138.32-177.09

Current Price：181.64

2.57%

Overvalued

18.18

Trailing

Forward

12.21

EV/EBITDA

Quest Diagnostics Inc. (DGX) has a current EV/EBITDA of 12.21. The 5-year average EV/EBITDA is 10.53. The thresholds are as follows: Strongly Undervalued below 8.07, Undervalued between 8.07 and 9.30, Fairly Valued between 11.76 and 9.30, Overvalued between 11.76 and 12.99, and Strongly Overvalued above 12.99. The current Forward EV/EBITDA of 12.21 falls within the Overvalued range.

14.85

EV/EBIT

Quest Diagnostics Inc. (DGX) has a current EV/EBIT of 14.85. The 5-year average EV/EBIT is 12.81. The thresholds are as follows: Strongly Undervalued below 9.25, Undervalued between 9.25 and 11.03, Fairly Valued between 14.59 and 11.03, Overvalued between 14.59 and 16.38, and Strongly Overvalued above 16.38. The current Forward EV/EBIT of 14.85 falls within the Overvalued range.

1.84

Quest Diagnostics Inc. (DGX) has a current PS of 1.84. The 5-year average PS is 1.71. The thresholds are as follows: Strongly Undervalued below 1.42, Undervalued between 1.42 and 1.56, Fairly Valued between 1.85 and 1.56, Overvalued between 1.85 and 2.00, and Strongly Overvalued above 2.00. The current Forward PS of 1.84 falls within the Historic Trend Line -Fairly Valued range.

12.80

P/OCF

Quest Diagnostics Inc. (DGX) has a current P/OCF of 12.80. The 5-year average P/OCF is 10.74. The thresholds are as follows: Strongly Undervalued below 7.88, Undervalued between 7.88 and 9.31, Fairly Valued between 12.17 and 9.31, Overvalued between 12.17 and 13.60, and Strongly Overvalued above 13.60. The current Forward P/OCF of 12.80 falls within the Overvalued range.

18.16

P/FCF

Quest Diagnostics Inc. (DGX) has a current P/FCF of 18.16. The 5-year average P/FCF is 14.91. The thresholds are as follows: Strongly Undervalued below 10.06, Undervalued between 10.06 and 12.49, Fairly Valued between 17.33 and 12.49, Overvalued between 17.33 and 19.76, and Strongly Overvalued above 19.76. The current Forward P/FCF of 18.16 falls within the Overvalued range.

Quest Diagnostics Inc (DGX) has a current Price-to-Book (P/B) ratio of 2.81. Compared to its 3-year average P/B ratio of 2.53 , the current P/B ratio is approximately 11.45% higher. Relative to its 5-year average P/B ratio of 2.57, the current P/B ratio is about 9.56% higher. Quest Diagnostics Inc (DGX) has a Forward Free Cash Flow (FCF) yield of approximately 6.03%. Compared to its 3-year average FCF yield of 6.17%, the current FCF yield is approximately -2.34% lower. Relative to its 5-year average FCF yield of 7.84% , the current FCF yield is about -23.17% lower.

2.81

P/B

Median3y

2.53

Median5y

2.57

6.03

FCF Yield

Median3y

6.17

Median5y

7.84

Competitors Valuation Multiple

The average P/S ratio for DGX's competitors is 1.31, providing a benchmark for relative valuation. Quest Diagnostics Inc Corp (DGX) exhibits a P/S ratio of 1.84, which is 40.06% above the industry average. Given its robust revenue growth of 15.19%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

DGX.N

Quest Diagnostics Inc

National Research Corp

Quipt Home Medical Corp

0.39

-4.07%

114.26M

Performance Decomposition

Market capitalization of DGX increased by 17.58% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.40B to 2.76B.

The secondary factor is the Margin Expansion, contributed 7.09%to the performance.

Overall, the performance of DGX in the past 1 year is driven by Revenue Growth. Which is more sustainable.

15.19%

2.40B → 2.76B

Revenue Growth

7.09%

10.01 → 10.72

Margin Expansion

-4.70%

22.84 → 21.76

P/E Change

17.58%