Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Labcorp Holdings Inc. (LH)

Company Dividend Discount ModelIndustry: Medical - Equipment & ServicesSector: Healthcare

Valuation Snapshot

Stable Growth$76.20 - $111.15$93.09
Multi-Stage$130.57 - $143.51$136.91
Blended Fair Value$115.00
Current Price$287.06
Upside-59.94%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%2.893.022.320.000.000.000.000.000.000.00
YoY Growth---4.29%30.12%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.24%1.40%1.18%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)855.20
(-) Cash Dividends Paid (M)241.50
(=) Cash Retained (M)613.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)171.04106.9064.14
Cash Retained (M)613.70613.70613.70
(-) Cash Required (M)-171.04-106.90-64.14
(=) Excess Retained (M)442.66506.80549.56
(/) Shares Outstanding (M)84.0884.0884.08
(=) Excess Retained per Share5.276.036.54
LTM Dividend per Share2.872.872.87
(+) Excess Retained per Share5.276.036.54
(=) Adjusted Dividend8.148.909.41
WACC / Discount Rate8.47%8.47%8.47%
Growth Rate-2.00%-1.00%0.00%
Fair Value$76.20$93.09$111.15
Upside / Downside-73.45%-67.57%-61.28%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)855.20846.65838.18829.80821.50813.29837.69
Payout Ratio28.24%40.59%52.94%65.30%77.65%90.00%92.50%
Projected Dividends (M)241.50343.66443.76541.82637.88731.96774.86

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.47%8.47%8.47%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)313.64316.84320.04
Year 2 PV (M)369.62377.20384.86
Year 3 PV (M)411.87424.60437.60
Year 4 PV (M)442.53460.87479.77
Year 5 PV (M)463.43487.56512.69
PV of Terminal Value (M)8,976.579,444.009,930.70
Equity Value (M)10,977.6511,511.0712,065.67
Shares Outstanding (M)84.0884.0884.08
Fair Value$130.57$136.91$143.51
Upside / Downside-54.51%-52.30%-50.01%

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