DGX

Quest Diagnostics IncorporatedHealthcare / Diagnostics & ResearchINTACT

Quest Diagnostics Incorporated provides diagnostic testing and services in the United States. The company develops and delivers diagnostic information services, such as routine, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It also provides services under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands to physicians, hospitals, patients and consumers, health plans, government agencies, employers, retailers, pharmaceutical companies and insurers commercial clinical laboratories, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile phlebotomists, nurses, and other health and wellness professionals. In addition, the company offers risk assessment services for the life insurance industry; healthcare IT healthcare providers and payers; testing and medical director services at hospital laboratories; test offerings in cardiometabolic and endocrine; cancer; clinical drug monitoring and toxicology; infectious disease, including autoimmune; neurology diagnostics, including Alzheimer's disease; and women's health, such as prenatal genetic; workplace drug testing, testing urine, hair, and oral fluid specimens services; and employer population health services, including biometric screenings, flu shots, and related preventative services. Further, it provides population health solutions; extended care services; develops in vitro diagnostic tests; laboratory diagnostic information and digital health connectivity systems; underwriting support services, including data gathering, paramedical examinations, and clinical laboratory testing and analytics; and national specimen collection and health data solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.

Share Price
$230.47
52W: $171.18 - $247.19
DCF Fair Value
$120.14
-91.8% Premium
P/E (TTM)
24.4x
ROIC
11.4%
Operating Margin
15.2%
FCF Yield
3.6%
Debt / Equity
0.81x
Piotroski Score
8/9
Altman Z-Score
3.71
Market Cap
$25.4B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($120.14)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$120.14
MOS Buy Target (-25%)
$90.11
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$230.47
DCF Fair Value
$120.34
-91.5% Premium
$910M
$100M$910M (Reported)$50,000M
7.6%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$5,800M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$8.1B
PV of Terminal Value
$10.9B
Implied Enterprise Value
$19.0B
Implied Equity Value
$13.2B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$979$1,054$1,134$1,220$1,313$1,372$1,433$1,498$1,565$1,636
Present Value (PV)$898$887$875$864$853$818$784$752$721$691

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-91.4% Premium
$120.41

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $9.43BVPS: $68.33
Revised Graham Formula-34% Premium
$172.02

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings3.4% Yield
$7.86 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.9BYield: 3.4%

Reverse DCF: Market Growth Expectation

FAIR BARRIER
10.0% CAGR (Next 10 Yrs)

At the current price of $230.47, the market is assuming the business will compound Free Cash Flow at 10.0% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
ℹ Fair expectations: Requires steady execution.
Autonomous Thesis Underwriting

Surveil DGX with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Quest Diagnostics Incorporated. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 15.2% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Quest Diagnostics Incorporated (DGX) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Quest Diagnostics Incorporated.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Quest Diagnostics Incorporated has an estimated DCF intrinsic fair value of $120.14 per share compared to its current market price of $230.47. This represents an estimated 91.8% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $120.40.

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