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Labcorp Holdings Inc. (LH)
Intrinsic Value (DCF)
Current$268.89
→
Intrinsic$167.60
-38%
$93.16$167.60$309.12
Market implies 17% growth for 5 years
Current price reflects execution expectations above 8% growth — not unreasonable for quality businesses.
At $269, the market prices in continued high-teens cash flow growth (17%) — likely reflecting buybacks, margin stability, and ecosystem strength.
Range: Bear $93 → Bull $309. Current price implies expectations above the base case, closer to bull expectations.
| Discount ↓Growth → | 4% | 6% | 8% | 10% |
|---|---|---|---|---|
| 8% | $211 | $237 | $264 | $294 |
| 10% | $131 | $149 | $168 | $188 |
| 12% | $87 | $100 | $114 | $129 |
| 14% | $58 | $69 | $80 | $92 |
Bull Case
- Bull case ($309) offers 15% upside at 10% growth, 9% discount
- Conservative 8% growth assumption is achievable based on track record
Bear Case
- Bear case ($93) implies 65% downside at 6% growth, 12% discount
- Price reflects 17% growth expectations vs 8% historical — high bar to clear
- Trading 38% above base case — execution must exceed assumptions to justify
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5-Year Free Cash Flow Projection
Year 1$1.18B
Year 2$1.28B
Year 3$1.38B
Year 4$1.49B
Year 5$1.61B
Terminal$23.69B
📐 Model Inputs
Growth Rate8.0%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$1.10BTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.