IQVIA Holdings Inc. (IQV)
Valuation Overview•Is IQVIA Holdings Inc. Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Fragile underlying quality score of 45/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
IQV demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company exhibits steady, low-single-digit revenue growth paired with robust earnings compounding (11.1% EPS 3Y CAGR). Operating efficiency remains adequate with margins around 13.9%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $4.2B | +5.9% | +4.2% | +7.5% | +11.0% | |
| EBITDA | $802.0M | — | +5.4% | — | — | |
| Net Income | $274.0M | -0.9% | +7.6% | — | +13.4% | |
| EPS (Diluted) | $1.61 | +4.7% | +11.1% | +40.5% | +9.8% | |
| Free Cash Flow | $618.0M | -3.0% | +8.9% | +8.8% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 26.1% | 32.0% | 32.9% | 33.3% |
| Operating Margin | 13.9% | 13.8% | 12.8% | 10.1% |
| Net Margin | 8.3% | 8.8% | 8.2% | 6.3% |
| FCF Margin | 16.1% | 12.1% | 12.8% | 10.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $2.82 | $2.90 | +2.8% | ||
| Q1'26 | $3.40 | $3.42 | +0.6% | ||
| Q4'25 | $2.98 | $3.00 | +0.7% | ||
| Q3'25 | $2.77 | $2.81 | +1.4% | ||
| Q2'25 | $2.63 | $2.70 | +2.7% | ||
| Q1'25 | $3.11 | $3.12 | +0.3% | ||
| Q4'24 | $2.82 | $2.84 | +0.7% | ||
| Q3'24 | $2.56 | $2.64 | +3.1% |
Total return is +8.5% (1Y), lagging the benchmark by -16.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -25.6% | -34.9% | — |
| 1Y | +8.5% | -16.5% | — |
| 3YCAGR | -7.9% | -26.9% | — |
| 5YCAGR | -6.9% | -19.5% | — |
| 10YCAGR | +10.2% | -3.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about IQVIA Holdings Inc. (IQV) valuation, health, and returns.
IQVIA Holdings Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +35.6% upside to DCF intrinsic value of $227.53)
IQVIA Holdings Inc. has multiple valuation anchors: DCF Intrinsic Value: $227.53 | Peer Relative Fair Value: $251.58 | Wall Street Analyst Target: $219.44 (implying +30.8% upside). A convergence of these signals offers higher conviction.
IQVIA Holdings Inc. displays fair financial health with a composite quality score of 45/100, supported by a Altman Z-Score of 1.2 (distress zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 8.7%.
IQVIA Holdings Inc. returns capital via buybacks instead of dividends, carrying a 4.4% buyback yield and reducing outstanding shares by -5.4% in the last 12 months.
IQVIA Holdings Inc.'s current growth trajectory is Stable. The company achieved +5.9% 1Y revenue growth and +4.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +4.2%.
Wall Street consensus is Buy based on 44 analysts, beating EPS expectations in 100% of recent quarters with a 40-quarter streak. The consensus price target represents a +30.8% change from current levels.
Investment risks for IQVIA Holdings Inc. include: -35.9% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 1.12x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.