Latest Ratios: P/E Ratio 27.1x · EV/EBITDA 13.7x · ROE 10.5%. (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 | $23.4B | $21.0B | $19.4B | $19.9B | $18.5B | $26.3B | $17.1B | $14.3B | $11.1B | $14.2B | $11.5B |
| Enterprise Value | $30.0B | $27.7B | $25.1B | $25.3B | $24.5B | $31.2B | $22.6B | $21.1B | $16.8B | $20.7B | $16.9B |
| P/E Ratio → | 27.14 | 23.98 | 25.94 | 47.65 | 14.49 | 11.07 | 11.01 | 17.38 | 12.61 | 11.22 | 15.71 |
| P/S Ratio | 1.67 | 1.51 | 1.49 | 1.64 | 1.56 | 2.00 | 1.23 | 1.24 | 0.98 | 1.36 | 1.19 |
| P/B Ratio | 2.75 | 2.43 | 2.40 | 2.52 | 1.83 | 2.56 | 1.81 | 1.89 | 1.59 | 2.09 | 2.08 |
| P/FCF | 19.37 | 17.43 | 17.66 | 22.78 | 12.57 | 9.93 | 9.77 | 13.72 | 12.03 | 12.45 | 12.82 |
| P/OCF | 14.24 | 12.82 | 12.20 | 15.00 | 9.47 | 8.46 | 8.03 | 9.92 | 8.53 | 9.76 | 9.78 |
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 | — | 1.99 | 1.93 | 2.08 | 2.06 | 2.37 | 1.61 | 1.83 | 1.48 | 1.98 | 1.75 |
| EV / EBITDA | 13.67 | 12.60 | 14.51 | 19.44 | 12.39 | 8.60 | 6.90 | 10.04 | 8.93 | 10.90 | 9.38 |
| EV / EBIT | 19.81 | 20.80 | 21.50 | 32.96 | 17.26 | 10.06 | 9.30 | 15.68 | 11.09 | 15.76 | 12.83 |
| EV / FCF | — | 22.96 | 22.91 | 28.98 | 16.59 | 11.77 | 12.87 | 20.20 | 18.12 | 18.08 | 18.86 |
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 | 26.8% | 26.8% | 27.9% | 27.7% | 31.3% | 38.0% | 35.4% | 28.1% | 28.0% | 33.2% | 33.0% |
| Operating Margin | 10.9% | 10.9% | 8.4% | 6.0% | 12.1% | 23.2% | 17.5% | 11.5% | 11.7% | 13.1% | 13.6% |
| Net Profit Margin | 6.3% | 6.3% | 5.7% | 3.4% | 10.8% | 18.1% | 11.1% | 7.1% | 7.8% | 12.1% | 7.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.5% | 10.5% | 9.4% | 4.6% | 12.5% | 24.1% | 18.3% | 11.3% | 12.8% | 20.5% | 14.0% |
| ROA | 4.8% | 4.8% | 4.3% | 2.3% | 6.3% | 11.8% | 8.2% | 4.8% | 5.4% | 8.2% | 5.1% |
| ROIC | 7.8% | 7.8% | 6.0% | 3.7% | 6.9% | 15.2% | 12.5% | 7.4% | 7.7% | 8.5% | 9.1% |
| ROCE | 9.9% | 9.9% | 7.6% | 4.7% | 8.3% | 17.6% | 15.1% | 9.0% | 9.2% | 10.2% | 10.5% |
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 | 0.83 | 0.83 | 0.90 | 0.75 | 0.62 | 0.62 | 0.71 | 0.94 | 0.87 | 0.99 | 1.06 |
| Debt / EBITDA | 3.28 | 3.28 | 4.20 | 4.57 | 3.16 | 1.75 | 2.07 | 3.38 | 3.23 | 3.56 | 3.24 |
| Net Debt / Equity | — | 0.77 | 0.71 | 0.69 | 0.59 | 0.47 | 0.57 | 0.89 | 0.81 | 0.94 | 0.98 |
| Net Debt / EBITDA | 3.04 | 3.04 | 3.33 | 4.16 | 3.00 | 1.34 | 1.66 | 3.22 | 3.00 | 3.40 | 3.00 |
| Debt / FCF | — | 5.53 | 5.25 | 6.20 | 4.02 | 1.84 | 3.10 | 6.48 | 6.09 | 5.63 | 6.04 |
| Interest Coverage | 5.94 | 5.94 | 5.61 | 3.85 | 7.88 | 14.63 | 11.70 | 5.59 | 6.19 | 5.58 | 6.02 |
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 | 1.42 | 1.42 | 1.44 | 1.17 | 1.50 | 1.92 | 1.66 | 1.12 | 1.51 | 1.23 | 1.36 |
| Quick Ratio | 1.23 | 1.23 | 1.30 | 1.02 | 1.35 | 1.77 | 1.53 | 1.03 | 1.38 | 1.12 | 1.24 |
| Cash Ratio | 0.19 | 0.19 | 0.46 | 0.17 | 0.10 | 0.53 | 0.43 | 0.13 | 0.23 | 0.14 | 0.24 |
| Asset Turnover | — | 0.76 | 0.71 | 0.73 | 0.59 | 0.64 | 0.70 | 0.64 | 0.70 | 0.63 | 0.68 |
| Inventory Turnover | 19.11 | 19.11 | 19.03 | 18.53 | 17.33 | 20.29 | 21.33 | 33.93 | 34.37 | 30.66 | 31.49 |
| Days Sales Outstanding | — | 59.14 | 58.84 | 62.99 | 61.45 | 82.76 | 78.77 | 63.98 | 59.98 | 64.58 | 57.49 |
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 | 1.0% | 1.1% | 1.3% | 1.3% | 1.1% | — | — | — | — | — | — |
| Payout Ratio | 27.5% | 27.5% | 32.6% | 60.8% | 15.3% | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.7% | 4.2% | 3.9% | 2.1% | 6.9% | 9.0% | 9.1% | 5.8% | 7.9% | 8.9% | 6.4% |
| FCF Yield | 5.2% | 5.7% | 5.7% | 4.4% | 8.0% | 10.1% | 10.2% | 7.3% | 8.3% | 8.0% | 7.8% |
| Buyback Yield | 1.9% | 2.1% | 1.3% | 5.2% | 6.2% | 6.5% | 0.8% | 3.1% | 6.3% | 2.4% | 0.4% |
| Total Shareholder Yield | 2.9% | 3.3% | 2.5% | 6.5% | 7.3% | 6.5% | 0.8% | 3.1% | 6.3% | 2.4% | 0.4% |
| Shares Outstanding | — | $84M | $84M | $88M | $92M | $98M | $98M | $99M | $103M | $104M | $104M |
Regulatory reimbursement and LDT oversight
Based on current market data, Labcorp trades at a forward P/E of 15.07, which appears to reflect a defensive utility-like valuation rather than a high-growth biotech services provider, suggesting that investors are discounting the potential for significant margin expansion following the recent Fortrea spin-off.
The current EV/EBITDA multiple of 13.20 indicates that the market is pricing in stable, predictable cash flows rather than aggressive growth. This valuation warrants further investigation into whether the market is underestimating the long-term value of the company's proprietary data moat and its ability to capture market share from smaller, distressed regional competitors.
According to recent financial statements, Labcorp's ROIC has remained suppressed, hovering between 1.2% and 2.1% over the last ten quarters, which suggests that the company's aggressive bolt-on acquisition strategy is currently failing to generate returns that meaningfully exceed its cost of capital.
The persistent gap between invested capital and returns indicates that the integration of hospital lab acquisitions is a capital-intensive process that may be diluting overall efficiency. Investors should monitor whether management can shift focus toward organic growth and automation to improve these returns, as the current trend suggests a decay in capital compounding.
As reported in quarterly filings, Labcorp's cash conversion cycle has remained relatively flat, oscillating around 50 days, which indicates that the company has limited leverage to improve its working capital efficiency despite its massive scale and dominant position in the diagnostic services market.
The stability of the DSO at approximately 60 days suggests that the company faces structural challenges in accelerating collections from a fragmented pool of insurers and patients. This lack of improvement in the cash conversion cycle implies that the company's operational leverage is largely fixed, leaving little room for margin expansion through working capital optimization.
Based on the provided balance sheet data, Labcorp maintains a debt-to-EBITDA ratio of approximately 12.92 as of 2026Q1, which, while elevated, appears manageable given the company's consistent, albeit volatile, ability to generate cash flow from its core diagnostic operations.
The interest coverage ratio, which has fluctuated between 3.90 and 7.34, suggests that the company is not currently facing immediate refinancing risk. However, the reliance on debt to fund ongoing acquisitions warrants close monitoring, as any significant downturn in diagnostic volumes could rapidly compress the company's ability to service its debt obligations.
The P/E ratio is frequently misapplied to Labcorp because it fails to account for the significant non-cash charges and restructuring costs associated with the company's ongoing M&A activity and the recent spin-off, which artificially depress reported earnings and distort the true underlying earning power.
Analysts should instead prioritize EV/EBITDA or P/FCF to better capture the cash-generative nature of the diagnostic business, as these metrics strip away the accounting noise inherent in the company's complex organizational structure. Relying solely on P/E may lead to an overly pessimistic view of the company's valuation by ignoring the cash-flow-positive reality of its core laboratory operations.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying LH stock.
Labcorp Holdings Inc.'s current P/E ratio is 27.1x. The historical average is 18.4x. This places it at the 86th percentile of its historical range.
Labcorp Holdings Inc.'s current EV/EBITDA is 13.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.6x.
Labcorp Holdings Inc.'s return on equity (ROE) is 10.5%. The historical average is 13.9%.
Based on historical data, Labcorp Holdings Inc. is trading at a P/E of 27.1x. This is at the 86th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Labcorp Holdings Inc.'s current dividend yield is 1.01% with a payout ratio of 27.5%.
Labcorp Holdings Inc. has 26.8% gross margin and 10.9% operating margin. Operating margin between 10-20% is typical for established companies.
Labcorp Holdings Inc.'s Debt/EBITDA ratio is 3.3x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.