DCF Tool


Laboratory Corp. Of America Holdings – Diagnostic Imaging Centers
recognized for our innovation, quality, and customer convenience, labcorp delivers timely, accurate results for improved patient care. with scientific expertise in esoteric testing, genomics, and clinical and anatomic pathology, labcorp performs more than one million tests on approximately 400,000 samples each day. labcorp is a pioneer in applying advances in medicine and science to laboratory testing, with more than 35 years of experience in serving physicians and their patients. labcorp operates a sophisticated laboratory network, with corporate headquarters in burlington, nc, and more than 34,000 employees worldwide. our more than 220,000 clients include physician offices, hospitals, managed care organizations, and biotechnology and pharmaceutical companies. laboratory corporation of america holdings is listed on the new york stock exchange (nyse) under ticker symbol lh.
Analysis Results
Intrinsic Value $1,711.81
Latest Price $221.74
Relative Value 87% undervalued
Thoughts on this result? Let us know.
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 4.0%. 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 2.96
2024 3.53 3.27
2025 4.06 3.61
2026 4.66 3.99
2027 5.36 4.41
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 161 billion. This corresponds to a present value of 127 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 18.2 billion. Adding in the terminal value gives a total present value of 145 billion.

There are presently 84.9 million outstanding shares, so the intrinsic value per share is 1711.81.

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

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.