DGX
Quest Diagnostics Incorporated (DGX)
Last Price$177.02.3%
Market Cap$19.6B
DCF value
$331.1
Undervalued (DCF value)
87.1%
Discount Rate
5.8%
Long-Term Growth Rate
3.0%
Stock quality
6/10
Good

DGX DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'19 ActualDec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 EstimateDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 Terminal
% growth
7,726.0
2.6%
9,437.0
22.1%
10,788.0
14.3%
9,883.0
(8.4%)
9,252.0
(6.4%)
9,829.7
6.2%
10,708.0
8.9%
11,130.9
3.9%
11,684.9
5.0%
12,056.0
3.2%
12,435.3
3.1%
12,822.9
3.1%
13,218.9
3.1%
13,623.2
3.1%
14,035.9
3.0%
14,456.9
3.0%
1,231.0
15.9%
1,971.0
20.9%
2,381.0
22.1%
1,428.0
14.4%
1,262.0
13.6%
1,797.8
18.3%
1,958.5
18.3%
2,035.8
18.3%
2,137.1
18.3%
2,205.0
18.3%
2,274.4
18.3%
2,345.3
18.3%
2,417.7
18.3%
2,491.7
18.3%
2,567.1
18.3%
2,644.2
18.3%
NOPAT
% effective tax rate
948.4
12.3%
1,489.8
15.8%
1,834.1
17.0%
1,122.7
11.4%
985.0
10.6%
1,403.3
14.3%
1,528.7
14.3%
1,589.0
14.3%
1,668.1
14.3%
1,721.1
14.3%
1,775.2
14.3%
1,830.6
14.3%
1,887.1
14.3%
1,944.8
14.3%
2,003.7
14.3%
2,063.8
14.3%
% of revenue
329.0
4.3%
361.0
3.8%
408.0
3.8%
437.0
4.4%
439.0
4.7%
424.3
4.3%
462.2
4.3%
480.4
4.3%
504.3
4.3%
520.4
4.3%
536.7
4.3%
553.5
4.3%
570.6
4.3%
588.0
4.3%
605.8
4.3%
624.0
4.3%
% of revenue
(400.0)
(5.2%)
(418.0)
(4.4%)
(403.0)
(3.7%)
(404.0)
(4.1%)
(408.0)
(4.4%)
(400.8)
(4.1%)
(436.6)
(4.1%)
(453.9)
(4.1%)
(476.5)
(4.1%)
(491.6)
(4.1%)
(507.1)
(4.1%)
(522.9)
(4.1%)
(539.0)
(4.1%)
(555.5)
(4.1%)
(572.4)
(4.1%)
(589.5)
(4.1%)
35.0
0.5%
22.0
0.2%
87.0
0.8%
119.0
1.2%
(145.0)
(1.6%)
14.5
0.1%
15.8
0.1%
16.4
0.1%
17.3
0.1%
17.8
0.1%
18.4
0.1%
18.9
0.1%
19.5
0.1%
20.1
0.1%
20.7
0.1%
21.4
0.1%
Free Cash Flow to Firm (FCFF)
% of revenue
912.4
11.8%
1,454.8
15.4%
1,926.1
17.9%
1,274.7
12.9%
871.0
9.4%
1,441.2
14.7%
1,570.0
14.7%
1,632.0
14.7%
1,713.2
14.7%
1,767.6
14.7%
1,823.3
14.7%
1,880.1
14.7%
1,938.2
14.7%
1,997.4
14.7%
2,057.9
14.7%
2,119.7
14.7%
% of FCFF used in calculation
100.0%
83.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
Discount factor
0.97
0.92
0.87
0.82
0.78
0.73
0.69
0.65
0.62
Discounted FCFF (DFCFF)
1,267.1
1,499.6
1,487.9
1,450.9
1,414.4
1,378.5
1,343.1
1,308.3
1,274.0

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DGX DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
12.4B
30.0%
Terminal Value (TV)
46.8B
Discounted TV
% share of EV
29.0B
70.0%
Total Debt
5,369.0M
Shares outstanding
110.9M
FX rate
1.0
87.1% undervalued

Equity Value Bridge

DGX DCF Financials

Revenue
$9,252.0M -> $14.0B 4.3% CAGR
Operating Income
$1,262.0M -> $2,567.1M 7.4% CAGR
FCFF
$871.0M -> $2,057.9M 9.0% CAGR

DGX DCF sensitivity

DCF value
Long-term Terminal growth rate
2.0%
2.5%
3.0%
3.5%
4.0%
WACC
5.0%
$344.0
$344.0
$344.0
$344.0
$344.0
5.5%
$336.0
$336.0
$336.0
$336.0
$336.0
5.8%
$331.0
$331.0
$331.0
$331.0
$331.0
6.5%
$315.0
$321.0
$321.0
$321.0
$321.0
7.0%
$279.0
$303.0
$313.0
$313.0
$313.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
2.0%
2.5%
3.0%
3.5%
4.0%
WACC
5.0%
94.0%
94.0%
94.0%
94.0%
94.0%
5.5%
90.0%
90.0%
90.0%
90.0%
90.0%
5.8%
87.0%
87.0%
87.0%
87.0%
87.0%
6.5%
78.0%
81.0%
81.0%
81.0%
81.0%
7.0%
58.0%
71.0%
77.0%
77.0%
77.0%

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FAQ

What is Quest Diagnostics Incorporated DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Quest Diagnostics Incorporated's Discounted Cash Flow (DCF) valuation estimates its share price at $331.1. This suggests it may be undervalued by 87.1% compared to its current price of around $177.0, using a WACC of 5.8% and growth rates of 3.0%.

What is Quest Diagnostics Incorporated WACC?

As of Mar 03, 2025, Quest Diagnostics Incorporated's Weighted Average Cost of Capital (WACC) is approximately 5.8%.

What is Quest Diagnostics Incorporated Enterprise Value?

As of Mar 03, 2025, Quest Diagnostics Incorporated's Enterprise Value (EV) is approximately $41.4B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.