DCF Studio

    LH · NYQ · Healthcare

    Labcorp Holdings Inc.

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 209.47

    Market price

    USD 355.59

    Implied upside

    -41.1%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-12-31

    Value Per Share

    Perpetuity growth
    USD 209.47-41.1%
    Exit multiple
    USD 352.63-0.8%
    Market price
    USD 355.59

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    0bn1bn1bnFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35
    Nominal FCFFDiscounted to todayUSD
    LineFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35CAGR
    RevenueUSD 14.8bnUSD 15.6bnUSD 16.4bnUSD 17.2bnUSD 17.9bnUSD 18.6bnUSD 19.3bnUSD 19.9bnUSD 20.5bnUSD 21.0bn+3.9%
    EBITUSD 1.6bnUSD 1.7bnUSD 1.8bnUSD 1.9bnUSD 2.0bnUSD 2.0bnUSD 2.1bnUSD 2.2bnUSD 2.2bnUSD 2.3bn+3.9%
    NOPATUSD 1.3bnUSD 1.3bnUSD 1.4bnUSD 1.5bnUSD 1.5bnUSD 1.6bnUSD 1.7bnUSD 1.7bnUSD 1.8bnUSD 1.8bn+3.9%
    Add depreciation & amortisationUSD 707.6mUSD 745.8mUSD 783.3mUSD 819.8mUSD 855.1mUSD 888.9mUSD 920.7mUSD 950.4mUSD 977.6mUSD 1.0bn+3.9%
    Less capital expenditureUSD -527.0mUSD -600.1mUSD -677.2mUSD -757.9mUSD -841.8mUSD -928.2mUSD -1.0bnUSD -1.1bnUSD -1.2bnUSD -1.3bn+10.4%
    Capex, % of revenue3.6%3.8%4.1%4.4%4.7%5.0%5.3%5.6%5.8%6.1%-
    Less increase in working capitalUSD -107.4mUSD -99.2mUSD -97.5mUSD -95.1mUSD -91.8mUSD -87.7mUSD -82.8mUSD -77.1mUSD -70.7mUSD -63.5m-5.7%
    Free cashflow to firmUSD 1.3bnUSD 1.4bnUSD 1.4bnUSD 1.4bnUSD 1.5bnUSD 1.5bnUSD 1.5bnUSD 1.5bnUSD 1.5bnUSD 1.5bn+0.9%
    Discount factor0.96290.89280.82780.76760.71170.65990.61180.56730.52600.4877-
    Present valueUSD 1.3bnUSD 1.2bnUSD 1.2bnUSD 1.1bnUSD 1.0bnUSD 974.3mUSD 906.9mUSD 840.4mUSD 775.3mUSD 711.9m-
    Present Value Of The ForecastUSD 10.1bn

    Discount Rate

    Source shown per component. All overridable above.

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta0.889Reported 0.834, pulled toward 1.0 (Blume)
    Cost of equity8.65%Risk-free + beta x equity risk premium
    Cost of debt5.44%Risk-free + 55bp, the spread for a AA rating at 6.8x interest cover. Book interest / average debt was lower, at 3.2%.
    Market capitalisationUSD 28.9bn81.6% of capital
    Total debtUSD 6.5bn18.4% of capital, book value as a proxy
    Tax rate21.0%Effective, capped at statutory
    WACC7.85%E/V x Re + D/V x Rd x (1 - t)

    Terminal Value

    Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.

    Perpetuity growth at 2.50%

    Value per shareUSD 209.47

    57% of EV

    Forecast FCFF, final year
    USD 1.5bn
    Capex at depreciation, working capital in reinvestment
    USD 2.1bn
    Less reinvestment at g/ROIC (31.8% of NOPAT)
    USD -673.5m
    Capitalised
    USD 1.4bn
    ROIC (WACC floor)
    7.9%
    Terminal value, undiscounted
    USD 27.6bn
    Terminal value, discounted
    USD 13.5bn
    Enterprise value
    USD 23.5bn
    Less net debt
    USD 6.0bn
    Equity value
    USD 17.6bn

    Exit at 15.9x EBITDA

    Value per shareUSD 352.63

    72% of EV

    Terminal value, undiscounted
    USD 52.2bn
    Terminal value, discounted
    USD 25.5bn
    Enterprise value
    USD 35.5bn
    Less net debt
    USD 6.0bn
    Equity value
    USD 29.6bn

    Spread between methods: 51%.

    Sensitivity

    Value per share (USD) by discount rate and long-run growth.

    Long-run growth
    Discount rate1.50%2.00%2.50%3.00%3.50%
    5.85%344.83351.56361.53376.49399.58
    6.85%268.04266.96266.55267.06268.91
    7.85%216.77213.12209.47205.82202.17
    8.85%183.02179.96176.89173.83170.77
    9.85%156.22153.61151.01148.40145.79

    Outlined: this model. Green text: above today's price of 355.59. Shading: distance from this model's own value.

    Priced In

    What each input would have to be to justify the current price, one at a time.

    InputActualModelImplied
    Revenue growth, a year5.6%4.2%9.6%
    EBIT margin14.8%10.9%17.4%
    Discount rate-7.9%5.9%
    Download as Excel

    Live formulas, not pasted numbers - edit a driver and the workbook reprices.

    Yahoo Finance and RBA data. General information, not advice. Methodology.