Labcorp Holdings Inc. (LH) DCF Valuation
TGM's two-stage DCF values Labcorp Holdings Inc. (LH) between $116.84 and $248.04 depending on assumptions, with a base case of $162.44. 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 (8.5%) reflects its beta.
What would today's price require?
$266.16 is justified only if free cash flow grows about +10.8% a year (fading to 2.5% long-run) at a 8.5% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 9.5% | $116.84 |
| Base case | 2.0%/yr | 8.5% | $162.44 |
| Optimistic | 5.0%/yr | 7.5% | $248.04 |
| Analyst DCF (FMP) | independent reference — different model | $387.20 | |
Current Price
$266.16
Market-Implied Growth
+10.8%/yr
vs -12.6% 5Y actual
Model Scenario Range
$116.84 – $248.04
model output — not a price target
LH DCF Fair Value Calculator
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
$158.46
-40.5% vs $266.16
Sensitivity — fair value by discount rate × terminal growth
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 $266.16; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.5% | $224 | $246 | $273 | $307 | $354 |
| 7.5% | $174 | $188 | $204 | $224 | $249 |
| 8.5% | $139 | $148 | $158 | $171 | $186 |
| 9.5% | $112 | $119 | $126 | $134 | $144 |
| 10.5% | $91.55 | $96.11 | $101 | $107 | $114 |
About Labcorp Holdings Inc.
Labcorp Holdings, Inc. offers vital diagnostic laboratory services, enabling medical professionals, healthcare facilities, pharmaceutical firms, scientific investigators, and patients to make well-informed and confident choices. The company commenced operations on April 16, 2024, and its main office is situated in Burlington, NC.
- Sector
- Healthcare
- Industry
- Medical - Diagnostics & Research
- CEO
- Adam H. Schechter