Intrinsic value of Laboratory of America Holdings - LH

Previous Close

$149.67

  Intrinsic Value

$144.92

stock screener

  Rating & Target

hold

-3%

  Value-price divergence*

-10%

Previous close

$149.67

 
Intrinsic value

$144.92

 
Up/down potential

-3%

 
Rating

hold

 
Value-price divergence*

-10%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of LH stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 15.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  11.08
  4.60
  4.64
  4.68
  4.71
  4.74
  4.76
  4.79
  4.81
  4.83
  4.85
  4.86
  4.87
  4.89
  4.90
  4.91
  4.92
  4.93
  4.93
  4.94
  4.95
  4.95
  4.96
  4.96
  4.96
  4.97
  4.97
  4.97
  4.98
  4.98
  4.98
Revenue, $m
  9,642
  10,086
  10,554
  11,047
  11,567
  12,115
  12,692
  13,300
  13,939
  14,612
  15,320
  16,065
  16,848
  17,671
  18,537
  19,447
  20,403
  21,408
  22,465
  23,574
  24,740
  25,965
  27,252
  28,604
  30,024
  31,516
  33,082
  34,728
  36,456
  38,271
  40,178
Variable operating expenses, $m
 
  6,748
  7,031
  7,330
  7,645
  7,977
  8,326
  8,694
  9,081
  9,488
  9,917
  9,725
  10,199
  10,698
  11,222
  11,773
  12,352
  12,960
  13,599
  14,271
  14,977
  15,719
  16,498
  17,316
  18,176
  19,079
  20,027
  21,023
  22,070
  23,169
  24,323
Fixed operating expenses, $m
 
  1,948
  1,996
  2,046
  2,097
  2,150
  2,203
  2,259
  2,315
  2,373
  2,432
  2,493
  2,555
  2,619
  2,685
  2,752
  2,821
  2,891
  2,963
  3,037
  3,113
  3,191
  3,271
  3,353
  3,437
  3,522
  3,611
  3,701
  3,793
  3,888
  3,985
Total operating expenses, $m
  8,329
  8,696
  9,027
  9,376
  9,742
  10,127
  10,529
  10,953
  11,396
  11,861
  12,349
  12,218
  12,754
  13,317
  13,907
  14,525
  15,173
  15,851
  16,562
  17,308
  18,090
  18,910
  19,769
  20,669
  21,613
  22,601
  23,638
  24,724
  25,863
  27,057
  28,308
Operating income, $m
  1,312
  1,390
  1,526
  1,671
  1,825
  1,989
  2,163
  2,348
  2,543
  2,751
  2,971
  3,847
  4,093
  4,354
  4,631
  4,923
  5,231
  5,557
  5,902
  6,266
  6,650
  7,055
  7,483
  7,935
  8,412
  8,914
  9,445
  10,004
  10,593
  11,215
  11,870
EBITDA, $m
  1,811
  2,265
  2,412
  2,568
  2,734
  2,911
  3,098
  3,297
  3,507
  3,731
  3,967
  4,217
  4,482
  4,762
  5,058
  5,371
  5,702
  6,051
  6,420
  6,809
  7,220
  7,654
  8,112
  8,595
  9,104
  9,641
  10,207
  10,804
  11,434
  12,097
  12,796
Interest expense (income), $m
  211
  190
  203
  217
  232
  247
  264
  281
  300
  319
  339
  361
  383
  407
  431
  457
  485
  514
  544
  576
  609
  644
  681
  720
  761
  804
  849
  896
  945
  997
  1,052
Earnings before tax, $m
  1,106
  1,201
  1,323
  1,454
  1,593
  1,741
  1,899
  2,066
  2,244
  2,432
  2,632
  3,486
  3,710
  3,948
  4,199
  4,465
  4,746
  5,044
  5,358
  5,690
  6,040
  6,411
  6,802
  7,215
  7,651
  8,111
  8,596
  9,108
  9,648
  10,217
  10,818
Tax expense, $m
  373
  324
  357
  393
  430
  470
  513
  558
  606
  657
  711
  941
  1,002
  1,066
  1,134
  1,206
  1,281
  1,362
  1,447
  1,536
  1,631
  1,731
  1,837
  1,948
  2,066
  2,190
  2,321
  2,459
  2,605
  2,759
  2,921
Net income, $m
  732
  876
  966
  1,061
  1,163
  1,271
  1,386
  1,508
  1,638
  1,776
  1,921
  2,545
  2,709
  2,882
  3,065
  3,259
  3,465
  3,682
  3,911
  4,154
  4,410
  4,680
  4,966
  5,267
  5,585
  5,921
  6,275
  6,649
  7,043
  7,459
  7,897

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  434
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  14,247
  14,449
  15,120
  15,827
  16,572
  17,357
  18,184
  19,054
  19,971
  20,935
  21,949
  23,016
  24,138
  25,317
  26,557
  27,861
  29,231
  30,671
  32,184
  33,774
  35,444
  37,199
  39,043
  40,980
  43,014
  45,151
  47,396
  49,754
  52,230
  54,830
  57,561
Adjusted assets (=assets-cash), $m
  13,813
  14,449
  15,120
  15,827
  16,572
  17,357
  18,184
  19,054
  19,971
  20,935
  21,949
  23,016
  24,138
  25,317
  26,557
  27,861
  29,231
  30,671
  32,184
  33,774
  35,444
  37,199
  39,043
  40,980
  43,014
  45,151
  47,396
  49,754
  52,230
  54,830
  57,561
Revenue / Adjusted assets
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
Average production assets, $m
  5,096
  5,325
  5,572
  5,833
  6,107
  6,397
  6,702
  7,022
  7,360
  7,715
  8,089
  8,482
  8,896
  9,331
  9,788
  10,268
  10,773
  11,304
  11,861
  12,447
  13,063
  13,710
  14,389
  15,103
  15,853
  16,640
  17,467
  18,336
  19,249
  20,207
  21,214
Working capital, $m
  651
  807
  844
  884
  925
  969
  1,015
  1,064
  1,115
  1,169
  1,226
  1,285
  1,348
  1,414
  1,483
  1,556
  1,632
  1,713
  1,797
  1,886
  1,979
  2,077
  2,180
  2,288
  2,402
  2,521
  2,647
  2,778
  2,917
  3,062
  3,214
Total debt, $m
  5,850
  5,793
  6,196
  6,621
  7,069
  7,540
  8,037
  8,561
  9,111
  9,691
  10,300
  10,942
  11,616
  12,325
  13,070
  13,853
  14,677
  15,542
  16,452
  17,407
  18,411
  19,466
  20,574
  21,738
  22,961
  24,245
  25,594
  27,011
  28,499
  30,062
  31,703
Total liabilities, $m
  8,741
  8,684
  9,087
  9,512
  9,960
  10,431
  10,928
  11,452
  12,002
  12,582
  13,191
  13,833
  14,507
  15,216
  15,961
  16,744
  17,568
  18,433
  19,343
  20,298
  21,302
  22,357
  23,465
  24,629
  25,852
  27,136
  28,485
  29,902
  31,390
  32,953
  34,594
Total equity, $m
  5,506
  5,765
  6,033
  6,315
  6,612
  6,925
  7,255
  7,603
  7,968
  8,353
  8,758
  9,183
  9,631
  10,102
  10,596
  11,117
  11,663
  12,238
  12,841
  13,476
  14,142
  14,843
  15,578
  16,351
  17,163
  18,015
  18,911
  19,852
  20,840
  21,877
  22,967
Total liabilities and equity, $m
  14,247
  14,449
  15,120
  15,827
  16,572
  17,356
  18,183
  19,055
  19,970
  20,935
  21,949
  23,016
  24,138
  25,318
  26,557
  27,861
  29,231
  30,671
  32,184
  33,774
  35,444
  37,200
  39,043
  40,980
  43,015
  45,151
  47,396
  49,754
  52,230
  54,830
  57,561
Debt-to-equity ratio
  1.062
  1.000
  1.030
  1.050
  1.070
  1.090
  1.110
  1.130
  1.140
  1.160
  1.180
  1.190
  1.210
  1.220
  1.230
  1.250
  1.260
  1.270
  1.280
  1.290
  1.300
  1.310
  1.320
  1.330
  1.340
  1.350
  1.350
  1.360
  1.370
  1.370
  1.380
Adjusted equity ratio
  0.367
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399
  0.399

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  732
  876
  966
  1,061
  1,163
  1,271
  1,386
  1,508
  1,638
  1,776
  1,921
  2,545
  2,709
  2,882
  3,065
  3,259
  3,465
  3,682
  3,911
  4,154
  4,410
  4,680
  4,966
  5,267
  5,585
  5,921
  6,275
  6,649
  7,043
  7,459
  7,897
Depreciation, amort., depletion, $m
  499
  875
  886
  897
  909
  922
  935
  949
  964
  979
  996
  370
  388
  407
  427
  448
  470
  494
  518
  544
  570
  599
  628
  660
  692
  727
  763
  801
  841
  882
  926
Funds from operations, $m
  962
  1,751
  1,852
  1,959
  2,072
  2,193
  2,321
  2,457
  2,602
  2,755
  2,917
  2,915
  3,097
  3,289
  3,493
  3,708
  3,935
  4,175
  4,429
  4,697
  4,980
  5,279
  5,594
  5,926
  6,277
  6,647
  7,038
  7,449
  7,883
  8,341
  8,823
Change in working capital, $m
  -214
  35
  37
  39
  42
  44
  46
  49
  51
  54
  57
  60
  63
  66
  69
  73
  77
  80
  84
  89
  93
  98
  103
  108
  114
  119
  125
  132
  138
  145
  153
Cash from operations, $m
  1,176
  1,716
  1,814
  1,919
  2,031
  2,149
  2,275
  2,409
  2,551
  2,701
  2,860
  2,856
  3,034
  3,224
  3,424
  3,635
  3,859
  4,095
  4,345
  4,608
  4,887
  5,181
  5,491
  5,818
  6,164
  6,528
  6,913
  7,318
  7,745
  8,196
  8,671
Maintenance CAPEX, $m
  0
  -223
  -233
  -243
  -255
  -267
  -279
  -293
  -307
  -321
  -337
  -353
  -370
  -388
  -407
  -427
  -448
  -470
  -494
  -518
  -544
  -570
  -599
  -628
  -660
  -692
  -727
  -763
  -801
  -841
  -882
New CAPEX, $m
  -279
  -230
  -247
  -261
  -275
  -289
  -305
  -321
  -338
  -355
  -374
  -393
  -413
  -435
  -457
  -480
  -505
  -531
  -558
  -586
  -616
  -647
  -679
  -714
  -750
  -788
  -827
  -869
  -913
  -958
  -1,007
Cash from investing activities, $m
  -796
  -453
  -480
  -504
  -530
  -556
  -584
  -614
  -645
  -676
  -711
  -746
  -783
  -823
  -864
  -907
  -953
  -1,001
  -1,052
  -1,104
  -1,160
  -1,217
  -1,278
  -1,342
  -1,410
  -1,480
  -1,554
  -1,632
  -1,714
  -1,799
  -1,889
Free cash flow, $m
  380
  1,264
  1,335
  1,415
  1,501
  1,593
  1,691
  1,795
  1,906
  2,024
  2,150
  2,109
  2,251
  2,400
  2,559
  2,727
  2,905
  3,094
  3,293
  3,504
  3,728
  3,963
  4,213
  4,476
  4,754
  5,048
  5,359
  5,686
  6,032
  6,397
  6,782
Issuance/(repayment) of debt, $m
  -667
  377
  403
  425
  448
  472
  497
  523
  551
  579
  610
  641
  674
  709
  745
  783
  823
  865
  909
  956
  1,004
  1,055
  1,108
  1,164
  1,223
  1,284
  1,349
  1,417
  1,488
  1,563
  1,641
Issuance/(repurchase) of shares, $m
  27
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -650
  377
  403
  425
  448
  472
  497
  523
  551
  579
  610
  641
  674
  709
  745
  783
  823
  865
  909
  956
  1,004
  1,055
  1,108
  1,164
  1,223
  1,284
  1,349
  1,417
  1,488
  1,563
  1,641
Total cash flow (excl. dividends), $m
  -283
  1,641
  1,738
  1,840
  1,949
  2,065
  2,188
  2,319
  2,457
  2,604
  2,759
  2,751
  2,925
  3,109
  3,304
  3,511
  3,729
  3,959
  4,203
  4,460
  4,731
  5,018
  5,321
  5,640
  5,977
  6,333
  6,708
  7,103
  7,520
  7,960
  8,423
Retained Cash Flow (-), $m
  -561
  -259
  -268
  -282
  -297
  -313
  -330
  -347
  -366
  -385
  -405
  -426
  -448
  -471
  -495
  -520
  -547
  -575
  -604
  -634
  -667
  -700
  -736
  -773
  -812
  -853
  -896
  -941
  -988
  -1,038
  -1,090
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,381
  1,470
  1,558
  1,652
  1,752
  1,858
  1,971
  2,091
  2,219
  2,355
  2,325
  2,477
  2,639
  2,810
  2,991
  3,182
  3,385
  3,599
  3,826
  4,065
  4,318
  4,585
  4,867
  5,165
  5,480
  5,812
  6,162
  6,532
  6,922
  7,333
Discount rate, %
 
  7.40
  7.77
  8.16
  8.57
  8.99
  9.44
  9.92
  10.41
  10.93
  11.48
  12.05
  12.66
  13.29
  13.95
  14.65
  15.38
  16.15
  16.96
  17.81
  18.70
  19.63
  20.62
  21.65
  22.73
  23.87
  25.06
  26.31
  27.63
  29.01
  30.46
PV of cash for distribution, $m
 
  1,286
  1,266
  1,231
  1,189
  1,139
  1,081
  1,017
  947
  872
  794
  665
  593
  521
  451
  385
  322
  265
  215
  170
  132
  100
  74
  54
  38
  26
  17
  11
  7
  4
  3
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Laboratory Corporation of America Holdings is a life sciences company that is integrated in guiding patient care, providing clinical laboratory and end-to-end drug development services. The Company operates as a healthcare diagnostics company. The Company operates through two segments: LabCorp Diagnostics (LCD) and Covance Drug Development (CDD). The LCD segment is an independent clinical laboratory business, which offers menu of frequently requested and specialty testing through an integrated network of primary and specialty laboratories across the United States. The CDD segment offers drug development services, and provides a range of drug research and development (R&D) and market access services to biopharmaceutical companies and medical device companies across the world. It serves a range of customers, including managed care organizations (MCOs), biopharmaceutical companies, governmental agencies, physicians and other healthcare providers.

FINANCIAL RATIOS  of  Laboratory of America Holdings (LH)

Valuation Ratios
P/E Ratio 21
Price to Sales 1.6
Price to Book 2.8
Price to Tangible Book
Price to Cash Flow 13.1
Price to Free Cash Flow 17.1
Growth Rates
Sales Growth Rate 11.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 9%
Cap. Spend. - 3 Yr. Gr. Rate 6.7%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 96.3%
Total Debt to Equity 106.2%
Interest Coverage 6
Management Effectiveness
Return On Assets 6.2%
Ret/ On Assets - 3 Yr. Avg. 6.5%
Return On Total Capital 6.5%
Ret/ On T. Cap. - 3 Yr. Avg. 6.9%
Return On Equity 14%
Return On Equity - 3 Yr. Avg. 14.8%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 33%
Gross Margin - 3 Yr. Avg. 34.4%
EBITDA Margin 18.8%
EBITDA Margin - 3 Yr. Avg. 18%
Operating Margin 13.6%
Oper. Margin - 3 Yr. Avg. 13.4%
Pre-Tax Margin 11.5%
Pre-Tax Margin - 3 Yr. Avg. 11.2%
Net Profit Margin 7.6%
Net Profit Margin - 3 Yr. Avg. 7%
Effective Tax Rate 33.7%
Eff/ Tax Rate - 3 Yr. Avg. 36.9%
Payout Ratio 0%

LH stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the LH stock intrinsic value calculation we used $9642 million for the last fiscal year's total revenue generated by Laboratory of America Holdings. The default revenue input number comes from 2016 income statement of Laboratory of America Holdings. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our LH stock valuation model: a) initial revenue growth rate of 4.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.4%, whose default value for LH is calculated based on our internal credit rating of Laboratory of America Holdings, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Laboratory of America Holdings.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of LH stock the variable cost ratio is equal to 67.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1900 million in the base year in the intrinsic value calculation for LH stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Laboratory of America Holdings.

Corporate tax rate of 27% is the nominal tax rate for Laboratory of America Holdings. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the LH stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for LH are equal to 52.8%.

Life of production assets of 22.9 years is the average useful life of capital assets used in Laboratory of America Holdings operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for LH is equal to 8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5506 million for Laboratory of America Holdings - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 102.668 million for Laboratory of America Holdings is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Laboratory of America Holdings at the current share price and the inputted number of shares is $15.4 billion.

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COMPANY NEWS

▶ 5 MedTech Momentum Picks Investors Will Love   [Oct-13-17 09:27AM  Zacks]
▶ How proposed cuts to Medicare reimbursement rates could impact LabCorp   [Sep-26-17 05:40PM  American City Business Journals]
▶ The Big Loser: Quest Diagnostics Quits   [Sep-25-17 04:34PM  Barrons.com]
▶ Quest Diagnostics: Will It Fail The Test?   [10:40AM  Barrons.com]
▶ Dynacare Acquires Hooper-Holmes Canada Ltd.   [Sep-06-17 03:00PM  CNW Group]
▶ LabCorp Completes Acquisition of Chiltern   [Sep-01-17 06:00AM  Business Wire]
▶ LabCorp gets regulatory OK for $1.2 billion takeover of Chiltern   [Aug-25-17 12:15PM  American City Business Journals]
▶ LabCorps Acquisition of Chiltern Clears Antitrust Review   [Aug-24-17 07:00PM  Business Wire]
▶ LabCorp creates chief medical officer position, snags BCBSNC exec   [02:50PM  American City Business Journals]
▶ LabCorp lures BCBSNC chief medical officer   [02:25PM  American City Business Journals]
▶ LabCorp purchases analytical testing services business in $8.5 million deal   [Aug-23-17 02:50PM  American City Business Journals]
▶ LabCorp prices $1.2 billion debt offering   [Aug-17-17 11:10AM  American City Business Journals]
▶ Company News For August 1, 2017   [Aug-01-17 10:54AM  Zacks]
▶ LabCorp to take over Chiltern in $1.2 billion deal   [10:59AM  American City Business Journals]
▶ [$$] LabCorp to Buy Chiltern for $1.2 Billion   [07:39AM  The Wall Street Journal]
▶ LabCorp tops Street 2Q forecasts   [Jul-26-17 08:46PM  Associated Press]
▶ Health-Care Stocks Get a Boost From Senate Bill Rollout   [Jun-22-17 12:22PM  The Wall Street Journal]
▶ [$$] Pamplona Capital Management Nears Deal to Buy Parexel   [Jun-20-17 04:30AM  The Wall Street Journal]
▶ LabCorp asks for dismissal of class-action lawsuit claiming it overcharges patients   [Jun-12-17 02:52PM  American City Business Journals]
▶ LabCorp completes acquisition of 1,600-employee Washington firm   [May-05-17 07:00AM  American City Business Journals]
Financial statements of LH
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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