TGM's two-stage DCF values Labcorp Holdings Inc. (LH) between $119.55 and $254.65 depending on assumptions, with a base case of $166.41. 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 (8.4%) reflects its beta.
What would today's price require?
$314.23 is justified only if free cash flow grows about +13.6% a year (fading to 2.5% long-run) at a 8.4% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 9.4% | $119.55 |
| Base case | 2.0%/yr | 8.4% | $166.41 |
| Optimistic | 5.0%/yr | 7.4% | $254.65 |
| Third-party model estimate (FMP) | independent reference · retrieved Jul 29, 2026 · assumptions not provided | $360.95 | |
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
$314.23
Market-Implied Growth
+13.6%/yr
vs -12.6% 5Y actual
Model Scenario Range
$119.55 – $254.65
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 LH (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 $1.2B · 0.08B shares · net debt $5.9B
Estimated Fair Value
$166.41
-47.0% vs $314.23
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 $314.23; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.4% | $225 | $253 | $288 | $334 | $396 |
| 7.4% | $174 | $193 | $215 | $242 | $276 |
| 8.4% | $138 | $151 | $166 | $184 | $206 |
| 9.4% | $112 | $121 | $132 | $144 | $159 |
| 10.4% | $90.98 | $98.11 | $106 | $115 | $126 |
