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Labcorp Holdings Inc. (LH)

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

Valuation Snapshot

Stable Growth$71.86 - $103.42$87.26
Multi-Stage$116.31 - $127.75$121.92
Blended Fair Value$104.59
Current Price$287.06
Upside-63.57%
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 Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$71.86$87.26$103.42
Upside / Downside-74.97%-69.60%-63.97%

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 Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)311.82315.01318.19
Year 2 PV (M)365.34372.83380.40
Year 3 PV (M)404.74417.26430.03
Year 4 PV (M)432.35450.27468.74
Year 5 PV (M)450.15473.59498.00
PV of Terminal Value (M)7,814.588,221.508,645.20
Equity Value (M)9,778.9910,250.4610,740.56
Shares Outstanding (M)84.0884.0884.08
Fair Value$116.31$121.92$127.75
Upside / Downside-59.48%-57.53%-55.50%

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