TGM's two-stage DCF values Quest Diagnostics Incorporated (DGX) between $104.03 and $234.00 depending on assumptions, with a base case of $148.01. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use) (floored at 2%)), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$237.63 is justified only if free cash flow grows about +10.6% a year (fading to 2.5% long-run) at a 7.5% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 8.5% | $104.03 |
| Base case | 2.0%/yr | 7.5% | $148.01 |
| Optimistic | 5.0%/yr | 6.5% | $234.00 |
| Third-party model estimate (FMP) | independent reference · retrieved Aug 10, 2026 · assumptions not provided | $213.80 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$237.63
Market-Implied Growth
+10.6%/yr
vs -10.9% 5Y actual
Model Scenario Range
$104.03 – $234.00
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for DGX (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.1B · 0.11B shares · net debt $6.0B
Estimated Fair Value
$148.01
-37.7% vs $237.63
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $237.63; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $207 | $239 | $282 | $342 | $432 |
| 6.5% | $155 | $174 | $198 | $229 | $271 |
| 7.5% | $120 | $133 | $148 | $167 | $190 |
| 8.5% | $95.08 | $104 | $114 | $127 | $141 |
| 9.5% | $76.38 | $82.94 | $90.42 | $99.05 | $109 |
