Quest Diagnostics Incorporated

NYSE:DGX Stock Report

Market Cap: US$17.9b

Quest Diagnostics Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 DGX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DGX ($162.11) is trading below our estimate of fair value ($414.93)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DGX. This is calculated by dividing DGX's market cap by their current earnings.
What is DGX's PE Ratio?
PE Ratio21.4x
EarningsUS$838.00m
Market CapUS$17.91b

Price to Earnings Ratio vs Peers

How does DGX's PE Ratio compare to its peers?

The above table shows the PE ratio for DGX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.9x
LH Labcorp Holdings
45.8x20.5%US$19.7b
DVA DaVita
15.6x4.3%US$13.1b
CHE Chemed
27.5x8.8%US$8.3b
CRVL CorVel
74.8xn/aUS$5.9b
DGX Quest Diagnostics
21.6x11.7%US$17.9b

Price-To-Earnings vs Peers: DGX is good value based on its Price-To-Earnings Ratio (21.6x) compared to the peer average (40.9x).

Price to Earnings Ratio vs Industry

How does DGX's PE Ratio compare vs other companies in the US Healthcare Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
THC Tenet Healthcare
4.7x-39.2%US$14.77b
NEUE NeueHealth
1.5xn/aUS$41.27m
AMS American Shared Hospital Services
4.9xn/aUS$19.37m
IDXG Interpace Biosciences
2.5xn/aUS$12.54m
DGX 21.4xIndustry Avg. 25.1xNo. of Companies11PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DGX is good value based on its Price-To-Earnings Ratio (21.6x) compared to the US Healthcare industry average (25.1x).

Price to Earnings Ratio vs Fair Ratio

What is DGX'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.

DGX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.4x
Fair PE Ratio29.3x

Price-To-Earnings vs Fair Ratio: DGX is good value based on its Price-To-Earnings Ratio (21.6x) compared to the estimated Fair Price-To-Earnings Ratio (29.3x).

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 DGX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$162.11
US$167.11
+3.1%
6.2%US$185.00US$145.00n/a16
Nov ’25US$155.29
US$167.11
+7.6%
6.2%US$185.00US$145.00n/a16
Oct ’25US$153.95
US$155.54
+1.0%
6.5%US$175.00US$136.00n/a16
Sep ’25US$156.97
US$154.18
-1.8%
5.9%US$173.00US$136.00n/a15
Aug ’25US$147.67
US$151.79
+2.8%
5.0%US$165.00US$136.00n/a14
Jul ’25US$137.09
US$147.00
+7.2%
4.0%US$160.00US$136.00n/a15
Jun ’25US$141.97
US$147.00
+3.5%
4.0%US$160.00US$136.00n/a15
May ’25US$137.55
US$146.41
+6.4%
3.8%US$160.00US$136.00n/a16
Apr ’25US$134.77
US$141.79
+5.2%
5.4%US$155.00US$125.00n/a16
Mar ’25US$124.68
US$141.85
+13.8%
5.4%US$155.00US$125.00n/a16
Feb ’25US$127.17
US$143.90
+13.2%
3.3%US$152.00US$135.00n/a15
Jan ’25US$137.88
US$144.70
+4.9%
6.1%US$165.00US$130.00n/a15
Dec ’24US$136.17
US$141.63
+4.0%
5.8%US$165.00US$130.00n/a15
Nov ’24US$132.53
US$140.43
+6.0%
6.2%US$165.00US$130.00US$155.2915
Oct ’24US$121.86
US$146.47
+20.2%
4.8%US$165.00US$136.00US$153.9515
Sep ’24US$130.52
US$146.88
+12.5%
4.2%US$165.00US$140.00US$156.9716
Aug ’24US$134.60
US$147.26
+9.4%
4.3%US$165.00US$140.00US$147.6716
Jul ’24US$140.56
US$145.75
+3.7%
4.8%US$165.00US$140.00US$137.0916
Jun ’24US$134.05
US$146.93
+9.6%
4.8%US$165.00US$140.00US$141.9714
May ’24US$139.48
US$148.53
+6.5%
6.0%US$166.00US$140.00US$137.5515
Apr ’24US$141.48
US$148.27
+4.8%
7.4%US$166.00US$125.00US$134.7715
Mar ’24US$139.00
US$149.21
+7.3%
8.2%US$170.00US$125.00US$124.6814
Feb ’24US$148.64
US$149.29
+0.4%
8.8%US$173.00US$125.00US$127.1714
Jan ’24US$156.44
US$142.69
-8.8%
5.6%US$160.00US$125.00US$137.8813
Dec ’23US$152.61
US$142.69
-6.5%
5.6%US$160.00US$125.00US$136.1713
Nov ’23US$142.78
US$143.85
+0.7%
4.5%US$160.00US$135.00US$132.5313

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

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