NYSE
DGX
Last Price
US $215.72
KEY FIGURES
MKT CAP
$23.2B
EPS
TTM
$9.31
PEG
TTM
1.58x
P/E
TTM
22.89x
P/S
TTM
2.11x
YIELD
1.55%
GROWTH
Revenue Y/Y
3.18%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $215.72
-68.83%
Default assumptions
EBITDA Multiple
Fair Value
Market $215.72
-62.90%
Default assumptions
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Quest Diagnostics Incorporated cash flow to debt ratio of 27.26% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
Quest Diagnostics Incorporated's free cash flow has increased 49.50% from $909.00M last year to $1.36G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Quest Diagnostics Incorporated's debt to equity ratio is 0.95, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Quest Diagnostics Incorporated's debt has decreased relative to shareholder equity from 1.05 last year to 0.95 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Quest Diagnostics Incorporated has a net debt to EBITDA ratio of 2.96x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Quest Diagnostics Incorporated's interest coverage ratio of 6.02 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Quest Diagnostics Incorporated's profit margin has increased (2.91%) in the last year from 8.82% to 9.08%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Quest Diagnostics Incorporated's short-term assets of $2.38G exceed its short-term liabilities of $2.28G
Increasing performance - ROA.
Quest Diagnostics Incorporated's return on assets of 6.14% is higher than the 5.00% threshold, indicating efficient asset utilization
Decreasing performance - Absolute return on equity.
Quest Diagnostics Incorporated's return on equity of 14.11%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Quest Diagnostics Incorporated's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Quest Diagnostics Incorporated had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Quest Diagnostics Incorporated has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Quest Diagnostics Incorporated has a free cash flow yield of 5.85%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Quest Diagnostics Incorporated's yearly earnings has increased 13.89% since last year from $871.00M to $992.00M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Quest Diagnostics Incorporated's yearly revenue has increased 11.78% since last year from $9.87G to $11.04G, signaling increasing performance
Increasing performance - ROIC.
ROIC 8.14% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Quest Diagnostics Incorporated's 3-year revenue CAGR of 3.74% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Quest Diagnostics Incorporated had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Quest Diagnostics Incorporated had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Quest Diagnostics Incorporated is overvalued relative to its fair value price of 67.23 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Quest Diagnostics Incorporated has an earnings yield of 4.44%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Quest Diagnostics Incorporated is overvalued relative to its fair value price of 80.04 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Quest Diagnostics Incorporated has an EV/EBITDA ratio of 14.05x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Quest Diagnostics Incorporated has a PEG-ratio over 1 which is considered overvalued
Undervalued - P/B ratio.
Quest Diagnostics Incorporated has a price-to-book ratio of 3.13x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Quest Diagnostics Incorporated has a price-to-sales ratio of 2.06x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
14.11%
Return on equity
ROIC: 8.14%
Valuation History
22.9X
Price to Earnings
EV/EBITDA: 14.1X
Cash flow
Profit margin
-1.87%
(FY vs FY)
Cash flow Y/Y
-3.05%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.