Latest Ratios: P/E Ratio 29.1x · EV/EBITDA 14.4x · 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 | $24.9B | $21.0B | $19.4B | $19.9B | $18.5B | $26.3B | $17.1B | $14.3B | $11.1B | $14.2B | $11.5B |
| Enterprise Value | $31.6B | $27.7B | $25.1B | $25.3B | $24.5B | $31.2B | $22.6B | $21.1B | $16.8B | $20.7B | $16.9B |
| P/E Ratio → | 29.06 | 23.98 | 25.94 | 47.65 | 14.49 | 11.07 | 11.01 | 17.38 | 12.61 | 11.22 | 15.71 |
| P/S Ratio | 1.79 | 1.51 | 1.49 | 1.64 | 1.56 | 2.00 | 1.23 | 1.24 | 0.98 | 1.36 | 1.19 |
| P/B Ratio | 2.95 | 2.43 | 2.40 | 2.52 | 1.83 | 2.56 | 1.81 | 1.89 | 1.59 | 2.09 | 2.08 |
| P/FCF | 20.67 | 17.43 | 17.66 | 22.78 | 12.57 | 9.93 | 9.77 | 13.72 | 12.03 | 12.45 | 12.82 |
| P/OCF | 15.19 | 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 | 14.38 | 12.60 | 14.51 | 19.44 | 12.39 | 8.60 | 6.90 | 10.04 | 8.93 | 10.90 | 9.38 |
| EV / EBIT | 20.84 | 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 | 2.07 | 3.38 | 3.23 | 3.56 | 3.24 |
| 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 | 1.66 | 3.22 | 3.00 | 3.40 | 3.00 |
| 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 | 0.9% | 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 | 4.8% | 5.7% | 5.7% | 4.4% | 8.0% | 10.1% | 10.2% | 7.3% | 8.3% | 8.0% | 7.8% |
| Buyback Yield | 1.8% | 2.1% | 1.3% | 5.2% | 6.2% | 6.3% | 0.8% | 3.1% | 6.3% | 2.4% | 0.4% |
| Total Shareholder Yield | 2.8% | 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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Quick answers to the most common questions about buying LH stock.
Labcorp Holdings Inc.'s current P/E ratio is 29.1x. 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 14.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.6x.
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 29.1x. 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 0.94% 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
Regulatory LDT oversight
Metrics are mathematically derived from official filings.
Margin Expansion Amid Pricing Pressure
According to recent financial statements, LH's gross margin improved to 29.8% in 2026Q2 from 26.2% in 2025Q4, while operating margin reached 12.1%, suggesting effective cost management and favorable test mix shifts.
The sequential gross margin expansion of 360 basis points from 2025Q4 to 2026Q2 appears driven by a mix shift toward higher-value esoteric testing and disciplined cost controls, as COGS as a percentage of revenue declined to 70.2%. Operating margin expansion to 12.1% in 2026Q2, up from 10.9% in the prior quarter, indicates operating leverage is emerging from the post-spin-off structure. However, net margin of 8.0% remains below the 9.0% peer average for DGX, and ongoing PAMA reimbursement cuts may limit the sustainability of these gains.
Return on Capital Still Recovering
Based on reported figures, LH's ROIC improved to 2.2% in 2026Q2 from 1.2% in 2024Q4, but remains well below DGX's 8.8%, indicating the company is still rebuilding returns after the Fortrea spin-off.
The sequential improvement in ROIC from 1.9% in 2026Q1 to 2.2% in 2026Q2 reflects both margin expansion and a modest reduction in invested capital as debt declined. However, ROE of 3.4% and ROA of 1.6% remain low on a trailing basis, partly due to the large goodwill base (38% of total assets) from acquisitions. The gap to DGX's ROIC suggests LH's capital efficiency is still impaired by integration costs and the spin-off, and investors should monitor whether returns can approach pre-spin levels as the business normalizes.
Working Capital Efficiency Steady
As reported in financial statements, LH's cash conversion cycle lengthened to 55 days in 2026Q2 from 49 days a year earlier, driven by a slight increase in DSO to 60 days, indicating stable but not improving working capital management.
The CCC expansion of six days year-over-year is modest and appears driven by a one-day increase in DSO and a four-day reduction in DPO, which may reflect timing of payables rather than a structural deterioration. Asset turnover has remained flat at 0.20x over the past ten quarters, suggesting that revenue growth is being matched by asset growth, consistent with the company's acquisitive strategy. The stability in DIO at 18 days indicates efficient inventory management, but the reliance on acquisitions to drive growth may keep asset turnover subdued.
Leverage Eases Post Spin-Off
According to recent SEC filings, LH's D/EBITDA improved to 10.73x in 2026Q2 from 18.79x in 2024Q4, while interest coverage rose to 7.23x, suggesting debt service is becoming more comfortable after the Fortrea separation.
The dramatic improvement in D/EBITDA from 18.79x to 10.73x over six quarters reflects both debt reduction and EBITDA growth, indicating the spin-off has simplified the capital structure. Interest coverage of 7.23x in 2026Q2, up from 3.90x in 2024Q4, provides a solid cushion for debt service, though the absolute level of debt remains high at $6.8B. The D/E ratio of 0.78 is slightly below DGX's 0.95, suggesting LH has modestly lower financial leverage, but the high goodwill balance warrants monitoring for potential impairment risk.
Liquidity Cushion Thins
Based on reported figures, LH's current ratio improved to 1.80 in 2026Q2 from 0.88 in 2024Q2, but cash reserves dropped to $141.8M, indicating reliance on operating cash flow and credit facilities for near-term obligations.
The current ratio improvement from 0.88 to 1.80 over two years suggests a stronger short-term liquidity position, but the sharp decline in cash from $1.5B in 2024Q4 to $141.8M in 2026Q2 indicates the company is deploying cash aggressively into buybacks and acquisitions. The quick ratio of 1.53 in 2026Q2, up from 0.76 in 2024Q1, shows that inventory is not a significant liquidity concern. However, the thin cash balance could leave LH vulnerable to a sudden working capital shock, and investors should monitor the company's access to revolving credit facilities.
P/E Misleads on Earnings Power
The most commonly misapplied ratio for LH is the trailing P/E of 29.39, which overstates valuation because it includes one-time spin-off charges; the forward P/E of 16.92 better reflects normalized earnings, as per recent financial statements.
The trailing P/E is distorted by non-recurring items related to the Fortrea spin-off, such as restructuring costs and tax impacts, which depressed net income in 2025Q4. The forward P/E of 16.92, based on analyst estimates, implies a more reasonable valuation relative to peers like DGX at 26.51, but it still embeds expectations of continued margin expansion. Investors should use EV/EBITDA of 14.51 (or forward 12.90) as a cleaner cross-sectional comparison, as it normalizes for capital structure and non-cash charges, and adjust for one-time items to assess true earning power.