We’ve recently updated our valuation analysis.

IQVIA Holdings Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 IQV?

Other financial metrics that can be useful for relative valuation.

IQV 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/Revenue3.6x
Enterprise Value/EBITDA18.9x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IQV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average32.7x
A Agilent Technologies
36.9x10.7%US$46.3b
MTD Mettler-Toledo International
38.6x6.6%US$32.3b
WAT Waters
28.8x6.4%US$20.1b
WST West Pharmaceutical Services
26.6x11.2%US$16.8b
IQV IQVIA Holdings
34.6x16.0%US$40.9b

Price-To-Earnings vs Peers: IQV is expensive based on its Price-To-Earnings Ratio (34.6x) compared to the peer average (32.7x).


Price to Earnings Ratio vs Industry

How does IQV's PE Ratio compare vs other companies in the US Life Sciences Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.1%
n/an/an/a

Price-To-Earnings vs Industry: IQV is expensive based on its Price-To-Earnings Ratio (34.6x) compared to the US Life Sciences industry average (28.3x)


Price to Earnings Ratio vs Fair Ratio

What is IQV'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.

IQV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.6x
Fair PE Ratio24x

Price-To-Earnings vs Fair Ratio: IQV is expensive based on its Price-To-Earnings Ratio (34.6x) compared to the estimated Fair Price-To-Earnings Ratio (24x).


Share Price vs Fair Value

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

Below Fair Value: IQV ($219.98) is trading below our estimate of fair value ($312.12)

Significantly Below Fair Value: IQV 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 IQV forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$219.98
US$256.44
+16.6%
6.0%US$285.00US$230.00n/a18
Nov ’23US$209.39
US$259.50
+23.9%
6.1%US$285.00US$230.00n/a18
Oct ’23US$181.14
US$269.11
+48.6%
6.6%US$300.00US$235.00n/a18
Sep ’23US$211.62
US$270.22
+27.7%
6.0%US$300.00US$235.00n/a18
Aug ’23US$238.37
US$265.16
+11.2%
5.6%US$290.00US$235.00n/a19
Jul ’23US$215.05
US$262.39
+22.0%
6.6%US$290.00US$235.00n/a18
Jun ’23US$210.11
US$265.59
+26.4%
7.9%US$310.00US$235.00n/a17
May ’23US$217.99
US$267.41
+22.7%
7.6%US$310.00US$235.00n/a17
Apr ’23US$240.31
US$281.53
+17.2%
6.5%US$310.00US$231.00n/a17
Mar ’23US$227.83
US$286.41
+25.7%
7.0%US$322.00US$231.00n/a17
Feb ’23US$247.10
US$304.59
+23.3%
6.7%US$350.00US$261.00n/a17
Jan ’23US$282.14
US$300.88
+6.6%
5.4%US$320.00US$261.00n/a17
Dec ’22US$259.25
US$300.29
+15.8%
5.5%US$320.00US$261.00n/a17
Nov ’22US$258.89
US$288.47
+11.4%
4.7%US$304.00US$250.00US$209.3917
Oct ’22US$241.55
US$275.88
+14.2%
7.3%US$300.00US$231.00US$181.1417
Sep ’22US$262.23
US$275.67
+5.1%
7.1%US$300.00US$231.00US$211.6218
Aug ’22US$247.70
US$275.21
+11.1%
6.9%US$300.00US$231.00US$238.3719
Jul ’22US$247.14
US$256.58
+3.8%
7.5%US$280.00US$204.00US$215.0519
Jun ’22US$237.25
US$256.65
+8.2%
7.4%US$280.00US$204.00US$210.1120
May ’22US$234.69
US$255.90
+9.0%
7.3%US$280.00US$204.00US$217.9920
Apr ’22US$198.06
US$217.45
+9.8%
9.1%US$238.00US$157.00US$240.3120
Mar ’22US$194.39
US$218.00
+12.1%
8.8%US$238.00US$157.00US$227.8317
Feb ’22US$180.44
US$201.44
+11.6%
8.3%US$227.00US$157.00US$247.1018
Jan ’22US$179.17
US$196.79
+9.8%
8.3%US$227.00US$157.00US$282.1419
Dec ’21US$171.23
US$195.74
+14.3%
8.3%US$227.00US$157.00US$259.2519
Nov ’21US$153.99
US$195.15
+26.7%
8.2%US$227.00US$157.00US$258.8920

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


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