Quest Diagnostics Valuation

DGX Stock  USD 133.11  2.05  1.56%   
At this time, the company appears to be fairly valued. Quest Diagnostics holds a recent Real Value of $132.84 per share. The prevailing price of the company is $133.11. Our model determines the value of Quest Diagnostics from analyzing the company fundamentals such as Operating Margin of 0.13 %, shares outstanding of 110.71 M, and Return On Equity of 0.15 as well as examining its technical indicators and probability of bankruptcy. In general, most investors support acquiring undervalued entities and dropping overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
Price Book
2.3365
Enterprise Value
19.5 B
Enterprise Value Ebitda
11.2865
Price Sales
1.5928
Forward PE
15.1515
Fairly Valued
Today
133.11
Please note that Quest Diagnostics' price fluctuation is very steady at this time. Calculation of the real value of Quest Diagnostics is based on 3 months time horizon. Increasing Quest Diagnostics' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Quest Diagnostics Incorporated is useful when determining the fair value of the Quest stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Quest Diagnostics. Since Quest Diagnostics is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Quest Stock. However, Quest Diagnostics' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  133.11 Real  132.84 Target  146.31 Hype  133.11 Naive  132.76
The real value of Quest Stock, also known as its intrinsic value, is the underlying worth of Quest Diagnostics Company, which is reflected in its stock price. It is based on Quest Diagnostics' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Quest Diagnostics' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Quest Diagnostics' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
131.66
Downside
132.84
Real Value
134.02
Upside
Estimating the potential upside or downside of Quest Diagnostics Incorporated helps investors to forecast how Quest stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Quest Diagnostics more accurately as focusing exclusively on Quest Diagnostics' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.801.851.90
Details
Hype
Prediction
LowEstimatedHigh
131.93133.11134.29
Details
Potential
Annual Dividend
LowForecastedHigh
1.801.831.86
Details
18 Analysts
Consensus
LowTarget PriceHigh
133.14146.31162.40
Details

Quest Diagnostics Investments

(1.06 Billion)

Quest Diagnostics Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Quest Diagnostics's current stock value. Our valuation model uses many indicators to compare Quest Diagnostics value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Quest Diagnostics competition to find correlations between indicators driving Quest Diagnostics's intrinsic value. More Info.
Quest Diagnostics Incorporated is one of the top stocks in five year return category among related companies. It is rated # 3 in price to earning category among related companies reporting about  7.71  of Price To Earning per Five Year Return. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Quest Diagnostics by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Quest Diagnostics' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Quest Diagnostics' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Quest Diagnostics' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Quest Diagnostics and how it compares across the competition.

About Quest Diagnostics Valuation

The stock valuation mechanism determines the current worth of Quest Diagnostics Incorporated on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Quest Diagnostics Incorporated. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Quest Diagnostics based exclusively on its fundamental and basic technical indicators. By analyzing Quest Diagnostics's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Quest Diagnostics's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Quest Diagnostics. We calculate exposure to Quest Diagnostics's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Quest Diagnostics's related companies.
Last ReportedProjected for 2024
Gross Profit3.1 B2.7 B
Pretax Profit Margin 0.12  0.09 
Operating Profit Margin 0.15  0.10 
Net Profit Margin 0.09  0.05 
Gross Profit Margin 0.32  0.44 

8 Steps to conduct Quest Diagnostics' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Quest Diagnostics' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Quest Diagnostics' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Quest Diagnostics' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Quest Diagnostics' revenue streams: Identify Quest Diagnostics' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Quest Diagnostics' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Quest Diagnostics' growth potential: Evaluate Quest Diagnostics' management, business model, and growth potential.
  • Determine Quest Diagnostics' financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Quest Diagnostics' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Quest Diagnostics' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Quest Diagnostics' value is low or high relative to the company's performance and growth projections. Determining the market value of Quest Diagnostics can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Quest Diagnostics represents a small ownership stake in the entity. As a stockholder of Quest, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Quest Diagnostics Dividends Analysis For Valuation

At this time, Quest Diagnostics' Dividend Yield is fairly stable compared to the past year. Dividend Payout Ratio is likely to rise to 0.39 in 2024, despite the fact that Dividends Paid is likely to grow to (298.3 M). . At this time, Quest Diagnostics' Retained Earnings are fairly stable compared to the past year. Price Earnings Ratio is likely to rise to 18.99 in 2024, whereas Retained Earnings Total Equity is likely to drop slightly above 6.6 B in 2024.
Last ReportedProjected for 2024
Dividends Paid-314 M-298.3 M
Dividend Yield 0.02  0.02 
Dividend Payout Ratio 0.37  0.39 
Dividend Paid And Capex Coverage Ratio(13.53)(14.21)
There are various types of dividends Quest Diagnostics can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Quest shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Quest Diagnostics Incorporated directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Quest pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Quest Diagnostics by the value of the dividends paid out.

Quest Diagnostics Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Quest Diagnostics does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding113 M
Quarterly Earnings Growth Y O Y0.868
Forward Price Earnings15.1515

Quest Diagnostics Current Valuation Indicators

Valuation refers to the process of determining the present value of Quest Diagnostics Incorporated and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Quest we look at many different elements of the entity such as Quest's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Quest Diagnostics' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Quest Diagnostics' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Quest Diagnostics, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Quest Diagnostics' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Quest Diagnostics' worth.
When determining whether Quest Diagnostics offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Quest Diagnostics' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Quest Diagnostics Incorporated Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Quest Diagnostics Incorporated Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Quest Diagnostics Incorporated. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price.
Note that the Quest Diagnostics information on this page should be used as a complementary analysis to other Quest Diagnostics' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Complementary Tools for Quest Stock analysis

When running Quest Diagnostics' price analysis, check to measure Quest Diagnostics' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Quest Diagnostics is operating at the current time. Most of Quest Diagnostics' value examination focuses on studying past and present price action to predict the probability of Quest Diagnostics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Quest Diagnostics' price. Additionally, you may evaluate how the addition of Quest Diagnostics to your portfolios can decrease your overall portfolio volatility.
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Is Quest Diagnostics' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Quest Diagnostics. If investors know Quest will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Quest Diagnostics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.868
Dividend Share
2.84
Earnings Share
7.49
Revenue Per Share
82.607
Quarterly Revenue Growth
(0.02)
The market value of Quest Diagnostics is measured differently than its book value, which is the value of Quest that is recorded on the company's balance sheet. Investors also form their own opinion of Quest Diagnostics' value that differs from its market value or its book value, called intrinsic value, which is Quest Diagnostics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Quest Diagnostics' market value can be influenced by many factors that don't directly affect Quest Diagnostics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Quest Diagnostics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Quest Diagnostics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Quest Diagnostics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.