Latest Ratios: P/E Ratio 29.8x · EV/EBITDA 15.8x · ROE 10.5%. (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 | $30.1B | $21.0B | $19.4B | $19.9B | $18.5B | $26.3B | $17.1B | $14.3B | $11.1B | $14.2B | $11.5B |
| Enterprise Value | $36.7B | $27.7B | $25.1B | $25.3B | $24.5B | $31.2B | $22.6B | $21.1B | $16.8B | $20.7B | $16.9B |
| P/E Ratio → | 29.79 | 23.98 | 25.94 | 47.65 | 14.49 | 11.07 | 11.01 | 17.38 | 12.61 | 11.22 | 15.71 |
| P/S Ratio | 2.06 | 1.51 | 1.49 | 1.64 | 1.56 | 2.00 | 1.23 | 1.24 | 0.98 | 1.36 | 1.19 |
| P/B Ratio | 3.56 | 2.43 | 2.40 | 2.52 | 1.83 | 2.56 | 1.81 | 1.89 | 1.59 | 2.09 | 2.08 |
| P/FCF | 23.36 | 17.43 | 17.66 | 22.78 | 12.57 | 9.93 | 9.77 | 13.72 | 12.03 | 12.45 | 12.82 |
| P/OCF | 18.32 | 12.82 | 12.20 | 15.00 | 9.47 | 8.46 | 8.03 | 9.92 | 8.53 | 9.76 | 9.78 |
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 | — | 1.99 | 1.93 | 2.08 | 2.06 | 2.37 | 1.61 | 1.83 | 1.48 | 1.98 | 1.75 |
| EV / EBITDA | 15.76 | 12.60 | 14.51 | 19.44 | 12.39 | 8.60 | 7.35 | 11.06 | 8.93 | 10.90 | 9.34 |
| EV / EBIT | 24.23 | 20.80 | 21.50 | 32.96 | 17.26 | 10.06 | 9.30 | 15.68 | 11.09 | 15.76 | 12.83 |
| EV / FCF | — | 22.96 | 22.91 | 28.98 | 16.59 | 11.77 | 12.87 | 20.20 | 18.12 | 18.08 | 18.86 |
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 | 26.8% | 26.8% | 27.9% | 27.7% | 31.3% | 38.0% | 35.4% | 28.1% | 28.0% | 33.2% | 33.0% |
| Operating Margin | 10.9% | 10.9% | 8.4% | 6.0% | 12.1% | 23.2% | 17.5% | 11.5% | 11.7% | 13.1% | 13.6% |
| Net Profit Margin | 6.3% | 6.3% | 5.7% | 3.4% | 10.8% | 18.1% | 11.1% | 7.1% | 7.8% | 12.1% | 7.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.5% | 10.5% | 9.4% | 4.6% | 12.5% | 24.1% | 18.3% | 11.3% | 12.8% | 20.5% | 14.0% |
| ROA | 4.8% | 4.8% | 4.3% | 2.3% | 6.3% | 11.8% | 8.2% | 4.8% | 5.4% | 8.2% | 5.1% |
| ROIC | 7.8% | 7.8% | 6.0% | 3.7% | 6.9% | 15.2% | 12.5% | 7.4% | 7.7% | 8.5% | 9.1% |
| ROCE | 9.9% | 9.9% | 7.6% | 4.7% | 8.3% | 17.6% | 15.1% | 9.0% | 9.2% | 10.2% | 10.5% |
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 | 0.83 | 0.83 | 0.90 | 0.75 | 0.62 | 0.62 | 0.71 | 0.94 | 0.87 | 0.99 | 1.06 |
| Debt / EBITDA | 3.28 | 3.28 | 4.20 | 4.57 | 3.16 | 1.75 | 2.20 | 3.73 | 3.23 | 3.56 | 3.23 |
| Net Debt / Equity | — | 0.77 | 0.71 | 0.69 | 0.59 | 0.47 | 0.57 | 0.89 | 0.81 | 0.94 | 0.98 |
| Net Debt / EBITDA | 3.04 | 3.04 | 3.33 | 4.16 | 3.00 | 1.34 | 1.77 | 3.55 | 3.00 | 3.40 | 2.99 |
| Debt / FCF | — | 5.53 | 5.25 | 6.20 | 4.02 | 1.84 | 3.10 | 6.48 | 6.09 | 5.63 | 6.04 |
| Interest Coverage | 5.94 | 5.94 | 5.61 | 3.85 | 7.88 | 14.63 | 11.70 | 5.59 | 6.19 | 5.58 | 6.02 |
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 | 1.42 | 1.42 | 1.44 | 1.17 | 1.50 | 1.92 | 1.66 | 1.12 | 1.51 | 1.23 | 1.36 |
| Quick Ratio | 1.23 | 1.23 | 1.30 | 1.02 | 1.35 | 1.77 | 1.53 | 1.03 | 1.38 | 1.12 | 1.24 |
| Cash Ratio | 0.19 | 0.19 | 0.46 | 0.17 | 0.10 | 0.53 | 0.43 | 0.13 | 0.23 | 0.14 | 0.24 |
| Asset Turnover | — | 0.76 | 0.71 | 0.73 | 0.59 | 0.64 | 0.70 | 0.64 | 0.70 | 0.63 | 0.68 |
| Inventory Turnover | 19.11 | 19.11 | 19.03 | 18.53 | 17.33 | 20.29 | 21.33 | 33.93 | 34.37 | 30.66 | 31.49 |
| Days Sales Outstanding | — | 59.14 | 58.84 | 62.99 | 61.45 | 82.76 | 78.77 | 63.98 | 59.98 | 64.58 | 57.49 |
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 | 0.8% | 1.1% | 1.3% | 1.3% | 1.1% | — | — | — | — | — | — |
| Payout Ratio | 27.5% | 27.5% | 32.6% | 60.8% | 15.3% | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.4% | 4.2% | 3.9% | 2.1% | 6.9% | 9.0% | 9.1% | 5.8% | 7.9% | 8.9% | 6.4% |
| FCF Yield | 4.3% | 5.7% | 5.7% | 4.4% | 8.0% | 10.1% | 10.2% | 7.3% | 8.3% | 8.0% | 7.8% |
| Buyback Yield | 1.5% | 2.1% | 1.3% | 5.2% | 6.2% | 6.3% | 0.8% | 3.1% | 6.3% | 2.4% | 0.4% |
| Total Shareholder Yield | 2.3% | 3.3% | 2.5% | 6.5% | 7.3% | 6.3% | 0.8% | 3.1% | 6.3% | 2.4% | 0.4% |
| Shares Outstanding | — | $84M | $84M | $88M | $92M | $98M | $98M | $99M | $103M | $104M | $104M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying LH stock.
Labcorp Holdings Inc.'s current P/E ratio is 29.8x. The historical average is 18.4x. This places it at the 93th percentile of its historical range.
Labcorp Holdings Inc.'s current EV/EBITDA is 15.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.7x.
Labcorp Holdings Inc.'s return on equity (ROE) is 10.5%. The historical average is 13.9%.
Based on historical data, Labcorp Holdings Inc. is trading at a P/E of 29.8x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Labcorp Holdings Inc.'s current dividend yield is 0.78% with a payout ratio of 27.5%.
Labcorp Holdings Inc. has 26.8% gross margin and 10.9% operating margin. Operating margin between 10-20% is typical for established companies.
Labcorp Holdings Inc.'s Debt/EBITDA ratio is 3.3x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Reimbursement pressure and thin cash buffer
Metrics are mathematically derived from official filings.
Premium Multiple Against Mid-Single-Digit Growth
Based on reported figures, LH trades at 34.7x trailing earnings and 16.6x trailing EV/EBITDA, a premium that appears difficult to justify against roughly 7% revenue growth and a defensive, utility-like profile.
The gap between trailing P/E of 34.7x and forward P/E of 19.7x suggests that near-term earnings are expected to recover sharply from depressed trailing levels rather than that the business is re-rating on growth. Compared with DGX at 29.1x trailing earnings and 15.9x EV/EBITDA, LH carries a modest premium despite a lower net margin of 6.9% versus 9.0%. Investors should monitor whether forward earnings delivery justifies the multiple, since the valuation leaves limited room for execution slippage.
Margin Recovery Still Below Peer Benchmarks
As reported in quarterly statements, LH's gross margin recovered from 26.2% in Q4 2025 to 29.1% in Q3 2026, yet operating margin of 10.6% and net margin of 6.9% remain below the 9.0% net margin reported by DGX.
The recovery in gross margin is meaningful, but operating margin has softened from 12.1% in Q2 2026, indicating that overhead growth is absorbing part of the gross profit gains. Net margin at 6.9% compared with a 2024 trough near 4.3% shows improvement, yet the trajectory suggests recovery is still incomplete rather than structurally restored. Earnings power should be assessed on operating margin rather than the volatile EPS line, which has swung far more than underlying margins.
Modest Returns Constrained by Goodwill-Heavy Capital
According to reported figures, LH's ROIC of 2.0% in Q3 2026 and ROE of 3.0% remain low, with ROIC improving only from roughly 1.2% in late 2024 despite a substantially larger acquired asset base.
The low absolute level of ROIC implies that acquisition-driven growth has not yet translated into high incremental returns on invested capital. Goodwill rising toward $7.2B while net PP&E stays flat near $3.1B suggests that the denominator of returns is dominated by acquired intangibles, which may dilute the economic return on tangible investment. Investors should monitor whether ROIC can climb meaningfully above the cost of capital as integration costs fade.
Coverage Improving but Debt Load Remains Elevated
Based on LH's reported figures, interest coverage of 6.6x in Q3 2026 has improved from roughly 3.9x in Q4 2024, while debt-to-EBITDA of 11.6x and debt-to-equity of 0.76 indicate a still-substantial leverage burden.
The recovery in interest coverage suggests that debt service has become more comfortable as operating earnings stabilized, though the 11.6x debt-to-EBITDA ratio is high relative to a typical healthcare services benchmark. Debt held in a narrow band of roughly $6.5B to $7.7B while equity grew, which points to gradual deleveraging through retained earnings rather than debt paydown. Refinancing and covenant risk warrant further investigation, as the headline debt-to-equity improvement may partly reflect goodwill-driven equity.
Thin Cash Position Limits Stress Tolerance
As reported in balance sheets, LH's current ratio of 1.41 and quick ratio of 1.22 in Q3 2026 appear adequate on paper, but cash falling to $261.8M from $1.5B in late 2024 leaves a narrow buffer against obligations.
The quick ratio remaining above 1.2 suggests that receivables and near-cash assets currently support short-term obligations without heavy reliance on inventory. However, the sharp drawdown in cash indicates that the company has deployed liquidity into acquisitions and shareholder returns, which may constrain flexibility under a severe demand or reimbursement shock. Under stress, collection timing on a fragmented payer base could quickly compress the liquid cushion.
Peer Gap May Persist Structurally
Based on reported figures, the ratio most commonly misapplied to LH is ROE, which reads only 3.0% partly because goodwill inflates equity, potentially understating the underlying economics of its acquired lab network.
Using headline ROE to judge LH may obscure the effect of roughly $7.2B in goodwill on the equity base, so a low ROE may reflect accounting structure as much as operating weakness. A more informative lens is ROIC adjusted for acquisition intangibles, or return on tangible capital, which would better isolate whether the logistics and testing infrastructure earns its cost of capital. Investors should treat the ROE gap versus DGX with caution until returns are reconstructed on a tangible-capital basis.