Quest Diagnostics provides diagnostic testing information services in the United States and internationally. The company offers clinical testing services, such as routine testing, gene-based and esoteric testing, anatomic pathology services, and drugs-of-abuse testing, as well as related services and insights; laboratory testing services for new drugs, vaccines, and medical devices, analytic, on-site prevention, and wellness services, and risk assessment services for the life insurance industry. The company was founded in 1967 and is founded in Madison, New Jersey.
DGX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Quest Diagnostics Inc. To summarize, we found that Quest Diagnostics Inc ranked in the 54th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 73.17% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for DGX, they are:
Quest Diagnostics Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 15.67% of tickers in our DCF set.
Relative to other stocks in its sector (Healthcare), Quest Diagnostics Inc has a reliance on debt greater than 71.34% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DGX, try SNY, FONR, NVST, DVA, and IONS.