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Laboratory Corp. Of America Holdings – Diagnostic Imaging Centers
Labcorp is a leading global life sciences company that provides vital information to help doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. Through its unparalleled diagnostics and drug development capabilities, company provides insights and accelerates innovations to improve health and improve lives. With more than 70,000 employees, Labcorp serves clients in more than 100 countries. Labcorp reported revenue of $14 billion in FY2020.
Analysis Results
Intrinsic Value $1,015.21
Latest Price $215.60
Relative Value 79% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 14.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 3.08 2.88
2024 3.53 3.09
2025 4.06 3.32
2026 4.66 3.56
2027 5.36 3.82
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 110 billion. This corresponds to a present value of 73.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 16.7 billion. Adding in the terminal value gives a total present value of 89.9 billion.

There are presently 88.6 million outstanding shares, so the intrinsic value per share is 1015.21.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,625,000,000
Current Cash 430,000,000
Current Liabilities 3,078,500,000
Current Debt 307,300,000
Non-Cash Working Capital (NCWC) 1,423,800,000
Change in NCWC 347,800,000
EBIT 2,134,600,000
Tax Provision 302,000,000
Depreciation and Amortization 828,300,000
Capital Expenditure -481,900,000
Unlevered Free Cash Flow 2,421,464,476
Current Assets 5,330,500,000
Current Cash 1,483,600,000
Current Liabilities 2,782,900,000
Current Debt 12,000,000
Non-Cash Working Capital (NCWC) 1,076,000,000
Change in NCWC -33,500,000
EBIT 3,329,100,000
Tax Provision 747,100,000
Depreciation and Amortization 940,000,000
Capital Expenditure -460,400,000
Unlevered Free Cash Flow 2,979,712,694
Current Assets 5,125,400,000
Current Cash 1,320,800,000
Current Liabilities 3,078,500,000
Current Debt 383,400,000
Non-Cash Working Capital (NCWC) 1,109,500,000
Change in NCWC 698,000,000
EBIT 2,951,000,000
Tax Provision 662,100,000
Depreciation and Amortization 624,700,000
Capital Expenditure -381,700,000
Unlevered Free Cash Flow 3,011,527,240
Current Assets 2,981,200,000
Current Cash 337,500,000
Current Liabilities 2,655,800,000
Current Debt 423,600,000
Non-Cash Working Capital (NCWC) 411,500,000
Change in NCWC -136,100,000
EBIT 1,394,600,000
Tax Provision 280,000,000
Depreciation and Amortization 577,200,000
Capital Expenditure -400,200,000
Unlevered Free Cash Flow 1,082,085,211
Current Assets 2,835,400,000
Current Cash 426,800,000
Current Liabilities 1,878,900,000
Current Debt 17,900,000
Non-Cash Working Capital (NCWC) 547,600,000
Change in NCWC -189,700,000
EBIT 1,385,400,000
Tax Provision 384,400,000
Depreciation and Amortization 552,100,000
Capital Expenditure -379,800,000
Unlevered Free Cash Flow 948,108,996
Current Assets 2,682,600,000
Current Cash 316,700,000
Current Liabilities 2,046,100,000
Current Debt 417,500,000
Non-Cash Working Capital (NCWC) 737,300,000
Change in NCWC -29,700,000
EBIT 1,446,400,000
Tax Provision -139,100,000
Depreciation and Amortization 533,200,000
Capital Expenditure -312,900,000
Unlevered Free Cash Flow 1,637,000,000
Current Assets 2,478,700,000
Current Cash 433,600,000
Current Liabilities 1,827,600,000
Current Debt 549,500,000
Non-Cash Working Capital (NCWC) 767,000,000
Change in NCWC 97,000,000
EBIT 1,378,700,000
Tax Provision 372,300,000
Depreciation and Amortization 499,200,000
Capital Expenditure -278,900,000
Unlevered Free Cash Flow 1,231,694,246
Current Assets 2,663,000,000
Current Cash 716,400,000
Current Liabilities 1,701,500,000
Current Debt 424,900,000
Non-Cash Working Capital (NCWC) 670,000,000
Change in NCWC 186,500,000
EBIT 1,126,800,000
Tax Provision 294,100,000
Depreciation and Amortization 457,800,000
Capital Expenditure -255,800,000
Unlevered Free Cash Flow 1,062,640,691
Current Assets 1,692,700,000
Current Cash 580,000,000
Current Liabilities 976,300,000
Current Debt 347,100,000
Non-Cash Working Capital (NCWC) 483,500,000
Change in NCWC 79,800,000
EBIT 942,500,000
Tax Provision 314,100,000
Depreciation and Amortization 245,500,000
Capital Expenditure -203,500,000
Unlevered Free Cash Flow 706,202,443
Current Assets 1,432,100,000
Current Cash 404,000,000
Current Liabilities 735,700,000
Current Debt 111,300,000
Non-Cash Working Capital (NCWC) 403,700,000
Change in NCWC 27,200,000
EBIT 1,029,600,000
Tax Provision 340,200,000
Depreciation and Amortization 230,100,000
Capital Expenditure -202,200,000
Unlevered Free Cash Flow 702,142,201
Current Assets 1,391,800,000
Current Cash 466,800,000
Current Liabilities 1,028,500,000
Current Debt 480,000,000
Non-Cash Working Capital (NCWC) 376,500,000
Change in NCWC 112,900,000
EBIT 1,070,200,000
Tax Provision 359,400,000
Depreciation and Amortization 229,800,000
Capital Expenditure -173,800,000
Unlevered Free Cash Flow 831,739,398

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