Laboratory Corporation of America Holdings

NYSE:LH Stock Report

Mkt Cap: US$19.6b

We’ve recently updated our valuation analysis.

Laboratory Corporation of America Holdings Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

LH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.7x
Enterprise Value/EBITDA11x
PEG Ratio2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.7x
DGX Quest Diagnostics
19.3x9.6%US$15.2b
DVA DaVita
18.1x10.9%US$9.1b
CHE Chemed
33.7x15.1%US$8.1b
CI Cigna Group
11.6x3.5%US$78.3b
LH Laboratory Corporation of America Holdings
19.5x10.9%US$19.6b

Price-To-Earnings vs Peers: LH is good value based on its Price-To-Earnings Ratio (19.5x) compared to the peer average (20.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: LH is good value based on its Price-To-Earnings Ratio (19.5x) compared to the US Healthcare industry average (22.4x)


Price to Earnings Ratio vs Fair Ratio

What is LH'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.

LH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.5x
Fair PE Ratio28.8x

Price-To-Earnings vs Fair Ratio: LH is good value based on its Price-To-Earnings Ratio (19.5x) compared to the estimated Fair Price-To-Earnings Ratio (28.8x).


Share Price vs Fair Value

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

Below Fair Value: LH ($220.74) is trading below our estimate of fair value ($409.8)

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


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 LH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$220.74
US$271.86
+23.2%
6.1%US$290.00US$235.00n/a14
Jun ’24US$212.44
US$271.86
+28.0%
6.1%US$290.00US$235.00n/a14
May ’24US$229.66
US$276.50
+20.4%
6.7%US$300.00US$235.00n/a14
Apr ’24US$229.42
US$284.31
+23.9%
4.3%US$300.00US$260.00n/a13
Mar ’24US$237.88
US$285.54
+20.0%
4.6%US$304.00US$260.00n/a13
Feb ’24US$250.14
US$279.15
+11.6%
7.6%US$315.00US$250.00n/a13
Jan ’24US$235.48
US$276.23
+17.3%
7.7%US$315.00US$250.00n/a13
Dec ’23US$241.77
US$278.15
+15.0%
7.2%US$315.00US$250.00n/a13
Nov ’23US$222.56
US$281.92
+26.7%
6.7%US$315.00US$260.00n/a13
Oct ’23US$204.81
US$299.92
+46.4%
5.4%US$320.00US$265.00n/a13
Sep ’23US$227.09
US$299.92
+32.1%
5.4%US$320.00US$265.00n/a13
Aug ’23US$257.94
US$299.92
+16.3%
5.4%US$320.00US$265.00n/a13
Jul ’23US$240.94
US$302.71
+25.6%
10.5%US$350.00US$215.00n/a14
Jun ’23US$245.78
US$305.14
+24.2%
10.8%US$350.00US$215.00US$212.4414
May ’23US$240.28
US$316.00
+31.5%
11.6%US$360.00US$215.00US$229.6614
Apr ’23US$263.17
US$328.43
+24.8%
12.3%US$370.00US$215.00US$229.4214
Mar ’23US$269.05
US$329.36
+22.4%
12.5%US$370.00US$215.00US$237.8814
Feb ’23US$272.96
US$333.29
+22.1%
12.9%US$380.00US$215.00US$250.1414
Jan ’23US$314.21
US$333.86
+6.3%
12.2%US$380.00US$215.00US$235.4814
Dec ’22US$285.45
US$329.79
+15.5%
11.9%US$377.00US$215.00US$241.7714
Nov ’22US$288.78
US$330.14
+14.3%
12.2%US$380.00US$215.00US$222.5614
Oct ’22US$279.48
US$326.00
+16.6%
12.9%US$380.00US$215.00US$204.8114
Sep ’22US$304.97
US$321.00
+5.3%
12.3%US$368.00US$215.00US$227.0914
Aug ’22US$296.15
US$310.14
+4.7%
12.3%US$350.00US$215.00US$257.9414
Jul ’22US$277.99
US$298.31
+7.3%
7.7%US$339.00US$247.00US$240.9413
Jun ’22US$263.74
US$294.36
+11.6%
8.9%US$339.00US$243.00US$245.7814

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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