Latest Ratios: P/E Ratio 26.6x · EV/EBITDA 14.8x · ROE 14.0%. (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 | $25.7B | $19.6B | $17.0B | $15.6B | $18.5B | $22.1B | $16.2B | $14.5B | $11.6B | $13.8B | $13.0B |
| Enterprise Value | $32.2B | $26.1B | $23.6B | $20.4B | $22.9B | $26.0B | $19.9B | $18.7B | $15.4B | $17.5B | $16.4B |
| P/E Ratio → | 26.63 | 19.83 | 19.62 | 18.34 | 19.60 | 11.14 | 11.33 | 16.98 | 15.74 | 17.91 | 20.38 |
| P/S Ratio | 2.33 | 1.78 | 1.73 | 1.68 | 1.87 | 2.05 | 1.72 | 1.88 | 1.54 | 1.79 | 1.74 |
| P/B Ratio | 3.61 | 2.69 | 2.47 | 2.43 | 3.07 | 3.37 | 2.35 | 2.52 | 2.17 | 2.74 | 2.75 |
| P/FCF | 18.92 | 14.43 | 18.75 | 18.03 | 14.05 | 12.10 | 10.21 | 17.23 | 14.17 | 14.94 | 16.82 |
| P/OCF | 13.64 | 10.40 | 12.78 | 12.25 | 10.75 | 9.92 | 8.08 | 11.68 | 9.65 | 11.73 | 12.21 |
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 | — | 2.37 | 2.39 | 2.20 | 2.31 | 2.41 | 2.10 | 2.43 | 2.05 | 2.27 | 2.19 |
| EV / EBITDA | 14.83 | 12.01 | 12.83 | 11.99 | 12.26 | 9.34 | 8.52 | 12.02 | 10.94 | 12.20 | 10.76 |
| EV / EBIT | 20.10 | 16.08 | 16.83 | 15.77 | 16.53 | 9.47 | 9.69 | 14.93 | 14.09 | 14.80 | 13.35 |
| EV / FCF | — | 19.21 | 25.95 | 23.60 | 17.40 | 14.23 | 12.51 | 22.24 | 18.89 | 18.97 | 21.17 |
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 | 31.9% | 31.9% | 32.9% | 33.2% | 34.7% | 39.0% | 38.5% | 34.8% | 34.6% | 38.8% | 38.6% |
| Operating Margin | 14.5% | 14.5% | 13.6% | 13.6% | 14.4% | 22.1% | 20.9% | 15.9% | 14.6% | 15.1% | 17.0% |
| Net Profit Margin | 9.0% | 9.0% | 8.8% | 9.2% | 9.6% | 18.5% | 15.2% | 11.1% | 9.8% | 10.0% | 8.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.0% | 14.0% | 13.1% | 13.7% | 15.1% | 29.7% | 22.6% | 15.4% | 14.2% | 15.8% | 13.6% |
| ROA | 6.1% | 6.1% | 5.8% | 6.4% | 7.2% | 14.4% | 10.7% | 7.2% | 6.8% | 7.5% | 6.4% |
| ROIC | 8.8% | 8.8% | 8.2% | 8.7% | 10.3% | 17.0% | 14.4% | 9.6% | 9.2% | 10.4% | 11.7% |
| ROCE | 11.5% | 11.5% | 10.3% | 10.7% | 12.3% | 19.8% | 17.1% | 12.1% | 11.6% | 12.6% | 14.3% |
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 | 0.95 | 0.95 | 1.03 | 0.86 | 0.78 | 0.73 | 0.70 | 0.94 | 0.75 | 0.77 | 0.79 |
| Debt / EBITDA | 3.18 | 3.18 | 3.85 | 3.23 | 2.53 | 1.71 | 2.06 | 3.47 | 2.83 | 2.69 | 2.45 |
| Net Debt / Equity | — | 0.89 | 0.95 | 0.75 | 0.73 | 0.59 | 0.53 | 0.73 | 0.72 | 0.74 | 0.71 |
| Net Debt / EBITDA | 2.99 | 2.99 | 3.56 | 2.83 | 2.36 | 1.40 | 1.57 | 2.71 | 2.73 | 2.59 | 2.21 |
| Debt / FCF | — | 4.78 | 7.19 | 5.57 | 3.35 | 2.13 | 2.30 | 5.01 | 4.72 | 4.03 | 4.35 |
| Interest Coverage | 5.86 | 5.86 | 6.20 | 7.93 | 9.34 | 18.10 | 12.35 | 6.98 | 6.48 | 7.73 | 8.60 |
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 | 1.04 | 1.04 | 1.10 | 1.31 | 1.22 | 1.56 | 1.72 | 1.25 | 0.94 | 1.24 | 1.56 |
| Quick Ratio | 0.96 | 0.96 | 1.02 | 1.20 | 1.10 | 1.44 | 1.60 | 1.19 | 0.87 | 1.15 | 1.48 |
| Cash Ratio | 0.18 | 0.18 | 0.25 | 0.38 | 0.20 | 0.50 | 0.65 | 0.60 | 0.09 | 0.13 | 0.37 |
| Asset Turnover | — | 0.68 | 0.61 | 0.66 | 0.77 | 0.79 | 0.67 | 0.60 | 0.68 | 0.73 | 0.74 |
| Inventory Turnover | 39.75 | 39.75 | 35.26 | 32.63 | 33.59 | 31.63 | 26.03 | 40.95 | 49.76 | 49.67 | 56.29 |
| Days Sales Outstanding | — | 46.57 | 48.21 | 47.74 | 44.13 | 48.65 | 58.79 | 50.22 | 49.05 | 43.75 | 44.98 |
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 | 1.3% | 1.8% | 1.9% | 2.0% | 1.7% | 1.4% | 1.8% | 2.0% | 2.3% | 1.8% | 1.7% |
| Payout Ratio | 35.6% | 35.6% | 38.0% | 36.8% | 32.2% | 15.5% | 20.8% | 33.3% | 36.1% | 32.0% | 34.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.8% | 5.0% | 5.1% | 5.5% | 5.1% | 9.0% | 8.8% | 5.9% | 6.4% | 5.6% | 4.9% |
| FCF Yield | 5.3% | 6.9% | 5.3% | 5.5% | 7.1% | 8.3% | 9.8% | 5.8% | 7.1% | 6.7% | 5.9% |
| Buyback Yield | 1.7% | 2.3% | 0.9% | 1.8% | 7.6% | 9.9% | 2.0% | 2.4% | 2.8% | 3.4% | 4.5% |
| Total Shareholder Yield | 3.1% | 4.1% | 2.8% | 3.8% | 9.3% | 11.3% | 3.8% | 4.4% | 5.1% | 5.2% | 6.2% |
| Shares Outstanding | — | $113M | $113M | $113M | $118M | $128M | $136M | $136M | $139M | $140M | $142M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying DGX stock.
Quest Diagnostics Incorporated's current P/E ratio is 26.6x. The historical average is 20.3x. This places it at the 89th percentile of its historical range.
Quest Diagnostics Incorporated's current EV/EBITDA is 14.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.0x.
Quest Diagnostics Incorporated's return on equity (ROE) is 14.0%. The historical average is 10.7%.
Based on historical data, Quest Diagnostics Incorporated is trading at a P/E of 26.6x. This is at the 89th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Quest Diagnostics Incorporated's current dividend yield is 1.34% with a payout ratio of 35.6%.
Quest Diagnostics Incorporated has 31.9% gross margin and 14.5% operating margin. Operating margin between 10-20% is typical for established companies.
Quest Diagnostics Incorporated's Debt/EBITDA ratio is 3.2x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Wage inflation and tech disruption
Metrics are mathematically derived from official filings.
Margin Stability Amid Cost Pressures
Gross margin held at 33.7% in Q2 2026, consistent with prior year, while operating margin expanded to 15.1% from 14.8%, according to recent SEC filings, indicating pricing and mix offsets.
The stability in gross margin despite inflationary labor and supply costs suggests that the company's test mix shift toward higher-value diagnostics is providing a buffer. Operating margin expansion, driven by SG&A growing slower than revenue, points to positive operating leverage. However, the gross margin remains below the 34.2% peak in Q2 2025, indicating that cost pressures are not fully offset, and investors should monitor whether this stability is sustainable.
ROIC Recovery Signals Efficiency Gains
ROIC improved to 2.5% in Q2 2026 from 2.0% in Q1 2024, as reported in financial statements, suggesting that the company is generating more return per dollar of invested capital.
The upward trend in ROIC, albeit from a low base, reflects both margin stability and improved asset turnover, which rose to 0.18 from 0.17. This suggests that the company is becoming more efficient in utilizing its asset base, partly due to volume recovery and disciplined capital deployment. However, ROIC remains modest, and the high level of goodwill (54% of total assets) implies that acquisitions have not yet delivered outsized returns, warranting close monitoring of integration synergies.
Working Capital Efficiency Improves
Cash conversion cycle turned negative at -15 days in Q1 2026, as per financial statements, reflecting efficient collection and payment practices, with DSO stable at 49 days.
The negative CCC indicates that the company is collecting cash from customers before paying suppliers, a favorable position that reduces the need for external financing. DSO has remained stable around 47-50 days, suggesting consistent billing and collection processes despite the complex payer mix. The slight improvement in DPO to 71 days in Q1 2026 from 68 days a year earlier indicates the company is taking longer to pay suppliers, which may reflect increased negotiating power or deliberate cash management.
Leverage Declines Despite M&A Activity
Debt-to-equity fell to 0.82 in Q2 2026 from 1.00 in Q4 2024, according to recent SEC filings, while interest coverage improved to 7.03 from 5.15, indicating stronger debt servicing capacity.
The reduction in leverage is notable given the company's ongoing tuck-in acquisition strategy, suggesting that cash flow generation is sufficient to fund acquisitions without increasing debt proportionally. Interest coverage has improved, providing a comfortable cushion for debt service. However, D/EBITDA remains elevated at 12.84, which is high for an industrial company, but this may be distorted by the low EBITDA margin typical of the diagnostics industry. Investors should monitor whether continued acquisitions pressure leverage ratios.
Liquidity Buffer Strengthens
Current ratio improved to 1.59 in Q2 2026 from 1.00 in Q2 2024, as reported in financial statements, with cash rising to $626M, indicating a stronger short-term liquidity position.
The improvement in the current ratio is driven by a build-up in cash and equivalents, which more than doubled from $271M in Q2 2024. The quick ratio of 1.46 suggests that the company can cover its short-term liabilities without relying on inventory sales, which is typical for a service-oriented business. This liquidity buffer provides resilience against seasonal working capital swings, such as the Q1 2026 outflow of -$210M, and supports the company's ability to fund acquisitions and capital returns.
Misapplied Metric: EV/EBITDA
EV/EBITDA of 15.25 may mislead for DGX because EBITDA excludes significant non-cash charges like amortization of acquired intangibles, which are central to its acquisition-driven model, according to recent filings.
Quest Diagnostics' business model relies heavily on acquisitions, resulting in substantial amortization of intangible assets that depress net income but not EBITDA. Consequently, EV/EBITDA appears lower than the economic reality, making the company look cheaper than it is. A more appropriate metric is EV/EBITDAR or EV/EBIT, which accounts for these charges, or P/E adjusted for amortization. Investors should also consider the high goodwill balance, which may not be reflected in EBITDA, and use a cash-flow-based multiple like P/FCF (19.60) for a clearer picture of valuation.