Intrinsic value of Laboratory of America Holdings - LH

Previous Close

$180.59

  Intrinsic Value

$160.87

stock screener

  Rating & Target

hold

-11%

Previous close

$180.59

 
Intrinsic value

$160.87

 
Up/down potential

-11%

 
Rating

hold

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 2017), $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 18.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  8.30
  7.97
  7.67
  7.41
  7.17
  6.95
  6.75
  6.58
  6.42
  6.28
  6.15
  6.04
  5.93
  5.84
  5.75
  5.68
  5.61
  5.55
  5.50
  5.45
  5.40
  5.36
  5.32
  5.29
  5.26
  5.24
  5.21
  5.19
  5.17
  5.16
Revenue, $m
  11,308
  12,209
  13,146
  14,119
  15,131
  16,182
  17,275
  18,411
  19,594
  20,824
  22,105
  23,439
  24,829
  26,279
  27,791
  29,370
  31,018
  32,739
  34,538
  36,419
  38,386
  40,444
  42,598
  44,852
  47,213
  49,685
  52,276
  54,990
  57,834
  60,816
Variable operating expenses, $m
  9,671
  10,347
  11,050
  11,781
  12,540
  13,329
  14,149
  15,001
  15,888
  16,811
  16,585
  17,586
  18,629
  19,717
  20,852
  22,036
  23,273
  24,564
  25,914
  27,325
  28,801
  30,345
  31,961
  33,653
  35,424
  37,279
  39,223
  41,259
  43,393
  45,630
Fixed operating expenses, $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
Total operating expenses, $m
  9,671
  10,347
  11,050
  11,781
  12,540
  13,329
  14,149
  15,001
  15,888
  16,811
  16,585
  17,586
  18,629
  19,717
  20,852
  22,036
  23,273
  24,564
  25,914
  27,325
  28,801
  30,345
  31,961
  33,653
  35,424
  37,279
  39,223
  41,259
  43,393
  45,630
Operating income, $m
  1,636
  1,861
  2,095
  2,338
  2,591
  2,854
  3,126
  3,410
  3,705
  4,013
  5,519
  5,853
  6,200
  6,562
  6,939
  7,333
  7,745
  8,175
  8,624
  9,094
  9,585
  10,099
  10,637
  11,199
  11,789
  12,406
  13,053
  13,731
  14,441
  15,185
EBITDA, $m
  4,186
  4,520
  4,866
  5,227
  5,601
  5,991
  6,395
  6,816
  7,253
  7,709
  8,183
  8,677
  9,192
  9,728
  10,288
  10,872
  11,483
  12,120
  12,786
  13,482
  14,210
  14,972
  15,770
  16,604
  17,478
  18,393
  19,352
  20,357
  21,410
  22,514
Interest expense (income), $m
  211
  365
  409
  455
  502
  551
  602
  655
  710
  767
  827
  889
  953
  1,021
  1,091
  1,164
  1,240
  1,320
  1,403
  1,489
  1,580
  1,675
  1,774
  1,878
  1,986
  2,100
  2,219
  2,343
  2,474
  2,611
  2,754
Earnings before tax, $m
  1,271
  1,452
  1,641
  1,837
  2,040
  2,252
  2,472
  2,700
  2,938
  3,186
  4,631
  4,899
  5,179
  5,471
  5,776
  6,093
  6,425
  6,772
  7,135
  7,514
  7,910
  8,325
  8,759
  9,213
  9,689
  10,187
  10,710
  11,257
  11,830
  12,431
Tax expense, $m
  343
  392
  443
  496
  551
  608
  667
  729
  793
  860
  1,250
  1,323
  1,398
  1,477
  1,559
  1,645
  1,735
  1,829
  1,926
  2,029
  2,136
  2,248
  2,365
  2,488
  2,616
  2,751
  2,892
  3,039
  3,194
  3,356
Net income, $m
  928
  1,060
  1,198
  1,341
  1,489
  1,644
  1,804
  1,971
  2,145
  2,326
  3,380
  3,576
  3,781
  3,994
  4,216
  4,448
  4,691
  4,944
  5,208
  5,485
  5,774
  6,077
  6,394
  6,726
  7,073
  7,437
  7,818
  8,217
  8,636
  9,075

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  17,949
  19,379
  20,866
  22,411
  24,017
  25,686
  27,421
  29,225
  31,101
  33,054
  35,087
  37,204
  39,411
  41,712
  44,113
  46,618
  49,234
  51,967
  54,823
  57,808
  60,931
  64,197
  67,616
  71,194
  74,941
  78,866
  82,977
  87,285
  91,800
  96,533
Adjusted assets (=assets-cash), $m
  17,949
  19,379
  20,866
  22,411
  24,017
  25,686
  27,421
  29,225
  31,101
  33,054
  35,087
  37,204
  39,411
  41,712
  44,113
  46,618
  49,234
  51,967
  54,823
  57,808
  60,931
  64,197
  67,616
  71,194
  74,941
  78,866
  82,977
  87,285
  91,800
  96,533
Revenue / Adjusted assets
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
  0.630
Average production assets, $m
  13,626
  14,712
  15,840
  17,014
  18,233
  19,500
  20,816
  22,186
  23,610
  25,093
  26,636
  28,244
  29,919
  31,666
  33,488
  35,390
  37,376
  39,451
  41,619
  43,885
  46,255
  48,735
  51,330
  54,047
  56,892
  59,871
  62,992
  66,263
  69,690
  73,283
Working capital, $m
  -475
  -513
  -552
  -593
  -635
  -680
  -726
  -773
  -823
  -875
  -928
  -984
  -1,043
  -1,104
  -1,167
  -1,234
  -1,303
  -1,375
  -1,451
  -1,530
  -1,612
  -1,699
  -1,789
  -1,884
  -1,983
  -2,087
  -2,196
  -2,310
  -2,429
  -2,554
Total debt, $m
  7,578
  8,419
  9,293
  10,202
  11,146
  12,127
  13,147
  14,208
  15,311
  16,460
  17,655
  18,900
  20,198
  21,551
  22,963
  24,436
  25,974
  27,581
  29,260
  31,015
  32,851
  34,772
  36,782
  38,886
  41,090
  43,397
  45,815
  48,348
  51,003
  53,786
Total liabilities, $m
  10,554
  11,395
  12,269
  13,178
  14,122
  15,103
  16,123
  17,184
  18,287
  19,436
  20,631
  21,876
  23,174
  24,527
  25,938
  27,412
  28,950
  30,557
  32,236
  33,991
  35,827
  37,748
  39,758
  41,862
  44,065
  46,373
  48,791
  51,324
  53,979
  56,761
Total equity, $m
  7,395
  7,984
  8,597
  9,233
  9,895
  10,583
  11,297
  12,041
  12,814
  13,618
  14,456
  15,328
  16,237
  17,186
  18,175
  19,207
  20,285
  21,410
  22,587
  23,817
  25,103
  26,449
  27,858
  29,332
  30,876
  32,493
  34,187
  35,962
  37,822
  39,772
Total liabilities and equity, $m
  17,949
  19,379
  20,866
  22,411
  24,017
  25,686
  27,420
  29,225
  31,101
  33,054
  35,087
  37,204
  39,411
  41,713
  44,113
  46,619
  49,235
  51,967
  54,823
  57,808
  60,930
  64,197
  67,616
  71,194
  74,941
  78,866
  82,978
  87,286
  91,801
  96,533
Debt-to-equity ratio
  1.020
  1.050
  1.080
  1.100
  1.130
  1.150
  1.160
  1.180
  1.190
  1.210
  1.220
  1.230
  1.240
  1.250
  1.260
  1.270
  1.280
  1.290
  1.300
  1.300
  1.310
  1.310
  1.320
  1.330
  1.330
  1.340
  1.340
  1.340
  1.350
  1.350
Adjusted equity ratio
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  928
  1,060
  1,198
  1,341
  1,489
  1,644
  1,804
  1,971
  2,145
  2,326
  3,380
  3,576
  3,781
  3,994
  4,216
  4,448
  4,691
  4,944
  5,208
  5,485
  5,774
  6,077
  6,394
  6,726
  7,073
  7,437
  7,818
  8,217
  8,636
  9,075
Depreciation, amort., depletion, $m
  2,550
  2,658
  2,771
  2,888
  3,010
  3,137
  3,269
  3,406
  3,548
  3,696
  2,664
  2,824
  2,992
  3,167
  3,349
  3,539
  3,738
  3,945
  4,162
  4,389
  4,626
  4,874
  5,133
  5,405
  5,689
  5,987
  6,299
  6,626
  6,969
  7,328
Funds from operations, $m
  3,478
  3,718
  3,969
  4,229
  4,500
  4,781
  5,073
  5,377
  5,693
  6,022
  6,044
  6,401
  6,773
  7,160
  7,565
  7,987
  8,428
  8,889
  9,370
  9,874
  10,400
  10,951
  11,527
  12,130
  12,762
  13,424
  14,117
  14,844
  15,605
  16,403
Change in working capital, $m
  -36
  -38
  -39
  -41
  -42
  -44
  -46
  -48
  -50
  -52
  -54
  -56
  -58
  -61
  -64
  -66
  -69
  -72
  -76
  -79
  -83
  -86
  -90
  -95
  -99
  -104
  -109
  -114
  -119
  -125
Cash from operations, $m
  3,514
  3,756
  4,008
  4,270
  4,542
  4,825
  5,119
  5,425
  5,743
  6,074
  6,098
  6,457
  6,831
  7,221
  7,629
  8,054
  8,497
  8,961
  9,446
  9,953
  10,483
  11,037
  11,617
  12,225
  12,861
  13,528
  14,226
  14,958
  15,725
  16,528
Maintenance CAPEX, $m
  -1,258
  -1,363
  -1,471
  -1,584
  -1,701
  -1,823
  -1,950
  -2,082
  -2,219
  -2,361
  -2,509
  -2,664
  -2,824
  -2,992
  -3,167
  -3,349
  -3,539
  -3,738
  -3,945
  -4,162
  -4,389
  -4,626
  -4,874
  -5,133
  -5,405
  -5,689
  -5,987
  -6,299
  -6,626
  -6,969
New CAPEX, $m
  -1,044
  -1,086
  -1,129
  -1,173
  -1,219
  -1,267
  -1,317
  -1,369
  -1,424
  -1,482
  -1,543
  -1,608
  -1,675
  -1,747
  -1,822
  -1,902
  -1,986
  -2,075
  -2,168
  -2,266
  -2,370
  -2,480
  -2,595
  -2,717
  -2,845
  -2,979
  -3,121
  -3,270
  -3,428
  -3,593
Cash from investing activities, $m
  -2,302
  -2,449
  -2,600
  -2,757
  -2,920
  -3,090
  -3,267
  -3,451
  -3,643
  -3,843
  -4,052
  -4,272
  -4,499
  -4,739
  -4,989
  -5,251
  -5,525
  -5,813
  -6,113
  -6,428
  -6,759
  -7,106
  -7,469
  -7,850
  -8,250
  -8,668
  -9,108
  -9,569
  -10,054
  -10,562
Free cash flow, $m
  1,212
  1,308
  1,408
  1,513
  1,622
  1,735
  1,852
  1,974
  2,100
  2,230
  2,045
  2,186
  2,331
  2,483
  2,640
  2,803
  2,972
  3,149
  3,333
  3,524
  3,724
  3,932
  4,149
  4,375
  4,612
  4,859
  5,118
  5,388
  5,671
  5,967
Issuance/(repayment) of debt, $m
  816
  841
  874
  909
  944
  981
  1,020
  1,061
  1,103
  1,148
  1,195
  1,245
  1,298
  1,353
  1,412
  1,473
  1,538
  1,607
  1,679
  1,755
  1,836
  1,921
  2,010
  2,104
  2,203
  2,308
  2,418
  2,533
  2,655
  2,783
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  816
  841
  874
  909
  944
  981
  1,020
  1,061
  1,103
  1,148
  1,195
  1,245
  1,298
  1,353
  1,412
  1,473
  1,538
  1,607
  1,679
  1,755
  1,836
  1,921
  2,010
  2,104
  2,203
  2,308
  2,418
  2,533
  2,655
  2,783
Total cash flow (excl. dividends), $m
  2,028
  2,149
  2,283
  2,422
  2,566
  2,716
  2,872
  3,034
  3,203
  3,378
  3,241
  3,431
  3,629
  3,836
  4,051
  4,276
  4,511
  4,756
  5,012
  5,280
  5,560
  5,852
  6,159
  6,480
  6,815
  7,167
  7,535
  7,921
  8,326
  8,749
Retained Cash Flow (-), $m
  -565
  -589
  -613
  -637
  -662
  -688
  -715
  -743
  -773
  -804
  -838
  -872
  -909
  -948
  -989
  -1,032
  -1,078
  -1,126
  -1,177
  -1,230
  -1,286
  -1,346
  -1,408
  -1,474
  -1,544
  -1,617
  -1,694
  -1,775
  -1,860
  -1,950
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
  115
  124
  134
  145
  155
  166
  178
  190
  203
  216
  229
  243
  258
  273
  289
  306
  323
  341
  360
  380
  401
  422
  445
  469
  493
  519
  547
  575
  605
  636
Cash available for distribution, $m
  1,463
  1,559
  1,670
  1,785
  1,904
  2,028
  2,157
  2,291
  2,430
  2,574
  2,403
  2,558
  2,720
  2,888
  3,062
  3,244
  3,433
  3,630
  3,835
  4,050
  4,273
  4,507
  4,750
  5,005
  5,271
  5,550
  5,841
  6,146
  6,465
  6,800
Discount rate, %
  7.10
  7.46
  7.83
  8.22
  8.63
  9.06
  9.51
  9.99
  10.49
  11.01
  11.57
  12.14
  12.75
  13.39
  14.06
  14.76
  15.50
  16.27
  17.09
  17.94
  18.84
  19.78
  20.77
  21.81
  22.90
  24.04
  25.25
  26.51
  27.83
  29.22
PV of cash for distribution, $m
  1,366
  1,351
  1,332
  1,301
  1,259
  1,205
  1,142
  1,070
  990
  905
  721
  647
  571
  497
  426
  358
  296
  241
  191
  149
  114
  85
  62
  44
  30
  20
  13
  8
  5
  3
Current shareholders' claim on cash, %
  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 25.3
Price to Sales 1.9
Price to Book 3.4
Price to Tangible Book
Price to Cash Flow 15.8
Price to Free Cash Flow 20.7
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 $10441 million for the last fiscal year's total revenue generated by Laboratory of America Holdings. The default revenue input number comes from 2017 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 8.3% 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 7.1%, 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 86.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 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 5.4% 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 1.1%.

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 120.5%.

Life of production assets of 10 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 -4.2%. 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 - $6830 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 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 $18.4 billion.

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COMPANY NEWS

▶ Three expansions, 923 jobs: Durham County approves incentives packages   [Aug-14-18 02:24PM  American City Business Journals]
▶ LabCorp completes $670M sale of Covance Food Solutions   [Aug-02-18 11:10AM  American City Business Journals]
▶ LabCorp: 2Q Earnings Snapshot   [07:19AM  Associated Press]
▶ Laboratory Of America's Earnings Outlook   [Jul-24-18 03:39PM  Benzinga]
▶ [$$] Medical Testing Giant LabCorp Hit by Ransomware Attack   [Jul-19-18 08:28PM  The Wall Street Journal]
▶ [$$] Medical Testing Giant LabCorp Hit by Ransomware Attack   [04:14PM  The Wall Street Journal]
▶ Yahoo Finance Live: Market Movers - Jul 17th, 2018   [07:20AM  Yahoo Finance Video]
▶ LabCorp discovers 'suspicious activity' on IT server over weekend   [Jul-16-18 05:08PM  American City Business Journals]
▶ How a business development hire from Chiltern positions Worldwide for more growth   [Jun-07-18 02:16PM  American City Business Journals]
▶ OmniSeq and LabCorp Launch OmniSeq Advance Assay   [Jun-01-18 04:11PM  GlobeNewswire]
▶ Stocks jump, Trump second-guesses Sessions   [11:38AM  Yahoo Finance]
▶ LabCorp expands agreement with Aetna   [10:37AM  American City Business Journals]
▶ LabCorp, UnitedHealthcare extend, expand relationship   [07:15AM  American City Business Journals]
▶ Triad can count April as victory for jobs deals vs. layoffs   [May-16-18 12:33PM  American City Business Journals]
▶ LabCorp to Webcast Its Annual Meeting of Shareholders   [May-03-18 08:30AM  Business Wire]
▶ LabCorp takes on the opioid crisis with its latest partnership   [12:26PM  American City Business Journals]
▶ Merger Monday Makes A Return   [Apr-30-18 03:24PM  Benzinga]
▶ How LabCorp's sale of Covance Food Solutions will impact headcounts   [01:15PM  American City Business Journals]
▶ LabCorp to sell Covance Food Solutions   [07:07AM  American City Business Journals]
▶ LabCorp: 1Q Earnings Snapshot   [07:21AM  Associated Press]
▶ Walgreens to add LabCorp patient centers in 10 Florida stores, including Orlando   [Apr-23-18 09:37AM  American City Business Journals]
▶ LabCorp at Walgreens Expands into Florida   [07:55AM  Business Wire]
▶ LabCorp's RTP expansion to add 422 jobs   [Apr-10-18 02:35PM  American City Business Journals]
▶ Edited Transcript of LH presentation 7-Mar-17 4:00pm GMT   [02:34PM  Thomson Reuters StreetEvents]
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