Quest Diagnostics Incorporated

LSE:0KSX Stock Report

Market Cap: US$17.2b

Quest Diagnostics Valuation

Is 0KSX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0KSX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$331.03
Fair Value
54.0% undervalued intrinsic discount
16
Number of Analysts

Below Fair Value: 0KSX ($152.29) is trading below our estimate of fair value ($331.03)

Significantly Below Fair Value: 0KSX is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0KSX?

Key metric: As 0KSX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0KSX. This is calculated by dividing 0KSX's market cap by their current earnings.
What is 0KSX's PE Ratio?
PE Ratio20.5x
EarningsUS$838.00m
Market CapUS$17.19b

Price to Earnings Ratio vs Peers

How does 0KSX's PE Ratio compare to its peers?

The above table shows the PE ratio for 0KSX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.6x
IDHC Integrated Diagnostics Holdings
16.9xn/aUS$268.6m
SN. Smith & Nephew
34.8x22.6%UK£8.8b
MDC Mediclinic International
21.9x10.7%UK£3.7b
CTEC ConvaTec Group
36.9x20.3%UK£4.6b
0KSX Quest Diagnostics
20.5x11.7%US$17.2b

Price-To-Earnings vs Peers: 0KSX is good value based on its Price-To-Earnings Ratio (20.5x) compared to the peer average (29.5x).

Price to Earnings Ratio vs Industry

How does 0KSX's PE Ratio compare vs other companies in the European Healthcare Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0KSX 20.5xIndustry Avg. 18.8xNo. of Companies7PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0KSX is expensive based on its Price-To-Earnings Ratio (20.5x) compared to the European Healthcare industry average (18.8x).

Price to Earnings Ratio vs Fair Ratio

What is 0KSX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0KSX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.5x
Fair PE Ratio34.8x

Price-To-Earnings vs Fair Ratio: 0KSX is good value based on its Price-To-Earnings Ratio (20.5x) compared to the estimated Fair Price-To-Earnings Ratio (34.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0KSX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$152.29
US$170.40
+11.9%
5.8%US$185.00US$153.00n/a16
Jan ’26US$151.33
US$169.96
+12.3%
5.7%US$185.00US$153.00n/a16
Dec ’25US$162.66
US$167.29
+2.8%
6.2%US$185.00US$145.00n/a16
Nov ’25US$155.94
US$167.11
+7.2%
6.2%US$185.00US$145.00n/a16
Oct ’25US$154.89
US$155.54
+0.4%
6.5%US$175.00US$136.00n/a16
Sep ’25US$155.92
US$154.18
-1.1%
5.9%US$173.00US$136.00n/a15
Aug ’25US$146.06
US$151.79
+3.9%
5.0%US$165.00US$136.00n/a14
Jul ’25US$137.00
US$147.00
+7.3%
4.0%US$160.00US$136.00n/a15
Jun ’25US$140.24
US$147.00
+4.8%
4.0%US$160.00US$136.00n/a15
May ’25US$137.15
US$146.41
+6.8%
3.8%US$160.00US$136.00n/a16
Apr ’25US$132.64
US$141.79
+6.9%
5.4%US$155.00US$125.00n/a16
Mar ’25US$124.32
US$141.85
+14.1%
5.4%US$155.00US$125.00n/a16
Feb ’25US$126.92
US$143.90
+13.4%
3.3%US$152.00US$135.00n/a15
Jan ’25US$137.41
US$144.70
+5.3%
6.1%US$165.00US$130.00US$151.3315
Dec ’24US$136.79
US$141.63
+3.5%
5.8%US$165.00US$130.00US$162.6615
Nov ’24US$132.51
US$140.43
+6.0%
6.2%US$165.00US$130.00US$155.9415
Oct ’24US$123.57
US$146.47
+18.5%
4.8%US$165.00US$136.00US$154.8915
Sep ’24US$134.74
US$146.88
+9.0%
4.2%US$165.00US$140.00US$155.9216
Aug ’24US$134.86
US$147.26
+9.2%
4.3%US$165.00US$140.00US$146.0616
Jul ’24US$140.55
US$145.75
+3.7%
4.8%US$165.00US$140.00US$137.0016
Jun ’24US$132.44
US$146.93
+10.9%
4.8%US$165.00US$140.00US$140.2414
May ’24US$139.17
US$148.53
+6.7%
6.0%US$166.00US$140.00US$137.1515
Apr ’24US$140.88
US$148.27
+5.2%
7.4%US$166.00US$125.00US$132.6415
Mar ’24US$137.79
US$149.21
+8.3%
8.2%US$170.00US$125.00US$124.3214
Feb ’24US$146.05
US$149.29
+2.2%
8.8%US$173.00US$125.00US$126.9214
Jan ’24US$157.20
US$142.69
-9.2%
5.6%US$160.00US$125.00US$137.4113
Analyst Price Target
Consensus Narrative from 16 Analysts
US$168.47
Fair Value
9.6% undervalued intrinsic discount
16
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/10 17:00
End of Day Share Price 2025/01/08 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Quest Diagnostics Incorporated is covered by 47 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jasper HellwegArgus Research Company
Brian Kemp DolliverAvondale Partners
Eric ColdwellBaird