Latest Ratios: P/E Ratio 24.4x · EV/EBITDA 13.9x · ROE 14.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $23.6B | $19.6B | $17.0B | $15.6B | $18.5B | $22.1B | $16.2B | $14.5B | $11.6B | $13.8B | $13.0B |
| Enterprise Value | $30.1B | $26.1B | $23.6B | $20.4B | $22.9B | $26.0B | $19.9B | $18.7B | $15.4B | $17.5B | $16.4B |
| P/E Ratio → | 24.39 | 19.83 | 19.62 | 18.34 | 19.60 | 11.14 | 11.33 | 16.98 | 15.74 | 17.91 | 20.38 |
| P/S Ratio | 2.14 | 1.78 | 1.73 | 1.68 | 1.87 | 2.05 | 1.72 | 1.88 | 1.54 | 1.79 | 1.74 |
| P/B Ratio | 3.31 | 2.69 | 2.47 | 2.43 | 3.07 | 3.37 | 2.35 | 2.52 | 2.17 | 2.74 | 2.75 |
| P/FCF | 17.38 | 14.43 | 18.75 | 18.03 | 14.05 | 12.10 | 10.21 | 17.23 | 14.17 | 14.94 | 16.82 |
| P/OCF | 12.53 | 10.40 | 12.78 | 12.25 | 10.75 | 9.92 | 8.08 | 11.68 | 9.65 | 11.73 | 12.21 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.37 | 2.39 | 2.20 | 2.31 | 2.41 | 2.10 | 2.43 | 2.05 | 2.27 | 2.19 |
| EV / EBITDA | 13.86 | 12.01 | 12.83 | 11.99 | 12.26 | 9.34 | 8.52 | 12.02 | 10.94 | 12.20 | 10.76 |
| EV / EBIT | 18.79 | 16.08 | 16.83 | 15.77 | 16.53 | 9.47 | 9.69 | 14.93 | 14.09 | 14.80 | 13.35 |
| EV / FCF | — | 19.21 | 25.95 | 23.60 | 17.40 | 14.23 | 12.51 | 22.24 | 18.89 | 18.97 | 21.17 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 31.9% | 31.9% | 32.9% | 33.2% | 34.7% | 39.0% | 38.5% | 34.8% | 34.6% | 38.8% | 38.6% |
| Operating Margin | 14.5% | 14.5% | 13.6% | 13.6% | 14.4% | 22.1% | 20.9% | 15.9% | 14.6% | 15.1% | 17.0% |
| Net Profit Margin | 9.0% | 9.0% | 8.8% | 9.2% | 9.6% | 18.5% | 15.2% | 11.1% | 9.8% | 10.0% | 8.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.0% | 14.0% | 13.1% | 13.7% | 15.1% | 29.7% | 22.6% | 15.4% | 14.2% | 15.8% | 13.6% |
| ROA | 6.1% | 6.1% | 5.8% | 6.4% | 7.2% | 14.4% | 10.7% | 7.2% | 6.8% | 7.5% | 6.4% |
| ROIC | 8.8% | 8.8% | 8.2% | 8.7% | 10.3% | 17.0% | 14.4% | 9.6% | 9.2% | 10.4% | 11.7% |
| ROCE | 11.5% | 11.5% | 10.3% | 10.7% | 12.3% | 19.8% | 17.1% | 12.1% | 11.6% | 12.6% | 14.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.95 | 0.95 | 1.03 | 0.86 | 0.78 | 0.73 | 0.70 | 0.94 | 0.75 | 0.77 | 0.79 |
| Debt / EBITDA | 3.18 | 3.18 | 3.85 | 3.23 | 2.53 | 1.71 | 2.06 | 3.47 | 2.83 | 2.69 | 2.45 |
| Net Debt / Equity | — | 0.89 | 0.95 | 0.75 | 0.73 | 0.59 | 0.53 | 0.73 | 0.72 | 0.74 | 0.71 |
| Net Debt / EBITDA | 2.99 | 2.99 | 3.56 | 2.83 | 2.36 | 1.40 | 1.57 | 2.71 | 2.73 | 2.59 | 2.21 |
| Debt / FCF | — | 4.78 | 7.19 | 5.57 | 3.35 | 2.13 | 2.30 | 5.01 | 4.72 | 4.03 | 4.35 |
| Interest Coverage | 6.15 | 6.15 | 6.20 | 7.93 | 9.34 | 18.10 | 12.35 | 6.98 | 6.48 | 7.73 | 8.60 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.04 | 1.04 | 1.10 | 1.31 | 1.22 | 1.56 | 1.72 | 1.25 | 0.94 | 1.24 | 1.56 |
| Quick Ratio | 0.96 | 0.96 | 1.02 | 1.20 | 1.10 | 1.44 | 1.60 | 1.19 | 0.87 | 1.15 | 1.48 |
| Cash Ratio | 0.18 | 0.18 | 0.25 | 0.38 | 0.20 | 0.50 | 0.65 | 0.60 | 0.09 | 0.13 | 0.37 |
| Asset Turnover | — | 0.68 | 0.61 | 0.66 | 0.77 | 0.79 | 0.67 | 0.60 | 0.68 | 0.73 | 0.74 |
| Inventory Turnover | 39.75 | 39.75 | 35.26 | 32.63 | 33.59 | 31.63 | 26.03 | 40.95 | 49.76 | 49.67 | 56.29 |
| Days Sales Outstanding | — | 46.57 | 48.21 | 47.74 | 44.13 | 48.65 | 58.79 | 50.22 | 49.05 | 43.75 | 44.98 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.5% | 1.8% | 1.9% | 2.0% | 1.7% | 1.4% | 1.8% | 2.0% | 2.3% | 1.8% | 1.7% |
| Payout Ratio | 35.6% | 35.6% | 38.0% | 36.8% | 32.2% | 15.5% | 20.8% | 33.3% | 36.1% | 32.0% | 34.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.1% | 5.0% | 5.1% | 5.5% | 5.1% | 9.0% | 8.8% | 5.9% | 6.4% | 5.6% | 4.9% |
| FCF Yield | 5.8% | 6.9% | 5.3% | 5.5% | 7.1% | 8.3% | 9.8% | 5.8% | 7.1% | 6.7% | 5.9% |
| Buyback Yield | 1.9% | 2.3% | 0.9% | 1.8% | 7.6% | 9.9% | 2.0% | 2.4% | 2.8% | 3.4% | 4.5% |
| Total Shareholder Yield | 3.4% | 4.1% | 2.8% | 3.8% | 9.3% | 11.3% | 3.8% | 4.4% | 5.1% | 5.2% | 6.2% |
| Shares Outstanding | — | $113M | $113M | $113M | $118M | $128M | $136M | $136M | $139M | $140M | $142M |
Reimbursement and PAMA pressure
According to current market data, Quest Diagnostics trades at a forward P/E of 19.53, which suggests investors are pricing the firm as a stable, low-growth utility rather than a high-growth biotech entity, despite the company's ongoing efforts to pivot toward higher-value specialized diagnostic testing services.
The current valuation multiple appears to reflect a market skepticism regarding the company's ability to accelerate organic growth beyond the low-single-digit range. Investors should monitor whether the premium over historical averages is justified by the successful integration of recent hospital outreach acquisitions or if the multiple will compress as the post-pandemic volume normalization concludes.
Based on reported figures, Quest Diagnostics' ROIC has remained stagnant between 1.8% and 2.4% over the last ten quarters, indicating that the company's aggressive acquisition strategy has yet to yield a meaningful improvement in the compounding of returns on invested capital for shareholders.
The persistent gap between the company's cost of capital and its current ROIC suggests that the significant goodwill on the balance sheet may be diluting overall capital efficiency. This trend warrants further investigation into whether the acquired laboratory assets are truly accretive to long-term value or if they are merely maintaining the company's existing market share in a commoditized environment.
As reported in financial statements, the company's cash conversion cycle has remained negative, fluctuating between -8 and -18 days over the past ten quarters, which highlights a structural reliance on delaying payments to suppliers to offset the inherent inefficiencies in the complex multi-payer billing environment.
While a negative CCC is often a sign of operational strength, in the context of DGX, it appears to be a defensive mechanism to manage liquidity rather than a sign of superior bargaining power. Investors should monitor the DPO trends, as any sudden shift in supplier terms could rapidly expose the company's lean liquidity position.
According to recent SEC filings, Quest Diagnostics maintains a debt-to-EBITDA ratio of 16.01 as of 2026Q1, a figure that, while appearing elevated, must be interpreted alongside the company's consistent interest coverage ratio of approximately 6x, suggesting that debt service remains manageable under current operating conditions.
The company's leverage profile appears to be carefully managed to support its tuck-in acquisition strategy without jeopardizing its investment-grade status. However, the reliance on debt to fund inorganic growth leaves the company sensitive to interest rate volatility, which could compress future free cash flow if refinancing costs rise significantly.
The P/E ratio is frequently misapplied to Quest Diagnostics because it fails to account for the significant non-cash amortization of intangible assets resulting from the company's frequent hospital lab acquisitions, which artificially depresses reported earnings and obscures the firm's true underlying cash-generating capacity.
Analysts should instead focus on EV/EBITDA or P/FCF to better capture the operational reality of the business, as these metrics normalize for the non-cash accounting charges that are inherent to a roll-up strategy. Relying solely on P/E may lead to an overly pessimistic view of the company's valuation relative to its actual ability to generate cash.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying DGX stock.
Quest Diagnostics Incorporated's current P/E ratio is 24.4x. The historical average is 20.3x. This places it at the 89th percentile of its historical range.
Quest Diagnostics Incorporated's current EV/EBITDA is 13.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.0x.
Quest Diagnostics Incorporated's return on equity (ROE) is 14.0%. The historical average is 10.7%.
Based on historical data, Quest Diagnostics Incorporated is trading at a P/E of 24.4x. This is at the 89th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Quest Diagnostics Incorporated's current dividend yield is 1.46% with a payout ratio of 35.6%.
Quest Diagnostics Incorporated has 31.9% gross margin and 14.5% operating margin. Operating margin between 10-20% is typical for established companies.
Quest Diagnostics Incorporated's Debt/EBITDA ratio is 3.2x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.