LH Valuation

Labcorp Holdings Inc

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263.910

+2.19(0.837%)1D

Overview
Forecast
Valuation
Earnings

LH Relative Valuation

LH'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, LH is overvalued; if below, it's undervalued.

Historical Valuation

Labcorp Holdings Inc (LH) is now in the Fair zone, suggesting that its current forward PE ratio of 15.54 is considered Fairly compared with the five-year average of 14.03. The fair price of Labcorp Holdings Inc (LH) is between 252.13 to 316.45 according to relative valuation methord.

Relative Value

Fair Zone

252.13-316.45

Current Price：261.72

Fair

15.53

Trailing

Forward

11.12

EV/EBITDA

Labcorp Holdings Inc. (LH) has a current EV/EBITDA of 11.12. The 5-year average EV/EBITDA is 10.36. The thresholds are as follows: Strongly Undervalued below 7.44, Undervalued between 7.44 and 8.90, Fairly Valued between 11.83 and 8.90, Overvalued between 11.83 and 13.29, and Strongly Overvalued above 13.29. The current Forward EV/EBITDA of 11.12 falls within the Historic Trend Line -Fairly Valued range.

13.38

EV/EBIT

Labcorp Holdings Inc. (LH) has a current EV/EBIT of 13.38. The 5-year average EV/EBIT is 12.32. The thresholds are as follows: Strongly Undervalued below 8.48, Undervalued between 8.48 and 10.40, Fairly Valued between 14.23 and 10.40, Overvalued between 14.23 and 16.15, and Strongly Overvalued above 16.15. The current Forward EV/EBIT of 13.38 falls within the Historic Trend Line -Fairly Valued range.

1.51

Labcorp Holdings Inc. (LH) has a current PS of 1.51. The 5-year average PS is 1.54. The thresholds are as follows: Strongly Undervalued below 1.12, Undervalued between 1.12 and 1.33, Fairly Valued between 1.74 and 1.33, Overvalued between 1.74 and 1.95, and Strongly Overvalued above 1.95. The current Forward PS of 1.51 falls within the Historic Trend Line -Fairly Valued range.

11.90

P/OCF

Labcorp Holdings Inc. (LH) has a current P/OCF of 11.90. The 5-year average P/OCF is 11.60. The thresholds are as follows: Strongly Undervalued below 6.84, Undervalued between 6.84 and 9.22, Fairly Valued between 13.98 and 9.22, Overvalued between 13.98 and 16.36, and Strongly Overvalued above 16.36. The current Forward P/OCF of 11.90 falls within the Historic Trend Line -Fairly Valued range.

16.66

P/FCF

Labcorp Holdings Inc. (LH) has a current P/FCF of 16.66. The 5-year average P/FCF is 15.56. The thresholds are as follows: Strongly Undervalued below 8.65, Undervalued between 8.65 and 12.10, Fairly Valued between 19.01 and 12.10, Overvalued between 19.01 and 22.47, and Strongly Overvalued above 22.47. The current Forward P/FCF of 16.66 falls within the Historic Trend Line -Fairly Valued range.

Labcorp Holdings Inc (LH) has a current Price-to-Book (P/B) ratio of 2.56. Compared to its 3-year average P/B ratio of 2.23 , the current P/B ratio is approximately 15.04% higher. Relative to its 5-year average P/B ratio of 2.32, the current P/B ratio is about 10.24% higher. Labcorp Holdings Inc (LH) has a Forward Free Cash Flow (FCF) yield of approximately 5.74%. Compared to its 3-year average FCF yield of 5.62%, the current FCF yield is approximately 2.21% lower. Relative to its 5-year average FCF yield of 6.94% , the current FCF yield is about -17.26% lower.

2.56

P/B

Median3y

2.23

Median5y

2.32

5.81

FCF Yield

Median3y

5.62

Median5y

6.94

Competitors Valuation Multiple

The average P/S ratio for LH's competitors is 3.20, providing a benchmark for relative valuation. Labcorp Holdings Inc Corp (LH) exhibits a P/S ratio of 1.51, which is -52.61% above the industry average. Given its robust revenue growth of 9.51%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Fresenius Medical Care AG

Hims & Hers Health Inc

Performance Decomposition

Market capitalization of LH increased by 21.86% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.22B to 3.53B.

The secondary factor is the P/E Change, contributed 6.39%to the performance.

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

9.51%

3.22B → 3.53B

Revenue Growth

5.96%

6.38 → 6.76

Margin Expansion

6.39%

27.13 → 28.87

P/E Change

21.86%