LH
Labcorp Holdings Inc.$280.85
Unclear
Target $263.11
Report: Mar 13, 2026Healthcare • Medical - Equipment & Services • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$280.85-6.3%
Rec: UnclearConviction: Medium
Entry Target
$202.39
(28% below current)
Fair Value
$263.11
(6% below current)
Stop Loss
$223.16
(21% below current)
Position Size
Starter
Time Horizon
Long-Term (3+ Years)
Key Metrics
Live Snapshot
Market Data
52 Week High$293.72
52 Week Low$209.38
Avg. 3 Month Volume692K
Efficiency
LTM Gross Margin28.8%
LTM EBITDA Margin15.9%
LTM EBIT Margin9.5%
LTM Operating Margin9.9%
LTM ROA4.8%
LTM ROE10.3%
LTM ROIC11.7%
LTM ROCE8.6%
Capital Structure
Market Cap (MM)$22.0B
Enterprise Value (MM)$28.0B
Shares Outstanding82.40M
Total Debt (MM)$6.53B
Cash & Equivalents (MM)$532.30M
LTM Net Debt (MM)$5.99B
LTM Net Debt/EBITDA2.7x
Growth
TTM Rev. Growth7.2%
Last 3-Yr Rev. CAGR-2.1%
Last 3-Yr EBITDA CAGR-5.0%
Last 3-Yr EPS CAGR-9.1%
Valuation
Street Target Price$315.38
LTM EV/Revenue2.0x
LTM EV/Gross Profit7.0x
LTM EV/EBIT21.0x
LTM EV/EBITDA12.6x
LTM P/E25.1x
LTM EV/FCF23.2x
LTM P/FCF18.2x
LTM P/TB2.7x
LTM P/B2.6x
Dividend Yield1.1%
Payout Ratio27.4%
Executive SummarySituation: Current price is $280.85 versus fair value $263.11 (-6.3% expected return), and valuation confidence is stable. Debate: Bull case depends on Realization of $100-125 million in annual LaunchPad savings which directly addresses market concerns regarding margin compression. Bear case centers on Moat erosion via PAMA reimbursement cuts. Conclusion: Recommendation is Unclear; maintain no position until reliability and catalyst evidence improve.
Bull Case
Specialty testing mix expansion to 45%+ of revenue; realization of $125 million in LaunchPad efficiencies; potential permanent PAMA reform via the RESULTS Act.
Bear Case
Moat erosion in routine testing due to reimbursement cuts; integration failure of high-premium acquisitions; negative tangible book value of -$21.43 per share providing no valuation floor.
Key Catalysts
Near-Term (0-6 months)Impact: High
Realization of $100-125 million in annual LaunchPad savings which directly addresses market concerns regarding margin compression.
Mid-Term (6-18 months)Impact: Critical
Legislative passage of the RESULTS Act, which would permanently reform PAMA and remove the primary regulatory overhang on the stock.
Long-Term (18+ months)Impact: Moderate
Labcorp is relevant at this moment due to its recent guidance raise and the successful integration of Invitae, which marks the completion of...
Primary Risks
Concern: Medium
Moat erosion via PAMA reimbursement cuts. This mechanism impairs the thesis by permanently lowering the pricing floor for 20-25% of the comp...
Concern: High
Integration failure of Invitae and other acquisitions. Poor execution leads to goodwill impairments and dilutes ROIC.
Concern: Medium
Stewardship is professional but lacks high-conviction alignment. The Governance Outcome Tree suggests: 1. Status Quo (Current plan executes,...
Recent Activity
2025-10-28SEC Filing (8-K)
-5.79%Excerpt: (EX-99.1) Document FOR IMMEDIATE RELEASE Media Investors Neil Hirsch Christin O’Donnell Media@labcorp.com Investor@labcorp.com Labcorp Announces 2025 Third Quarter Results Updates Full-Year Guidance • Financial results from...
2025-07-24SEC Filing (8-K)
+6.86%Excerpt: (EX-99.1) Document FOR IMMEDIATE RELEASE Media Investors Neil Hirsch Christin O’Donnell Media@labcorp.com Investor@labcorp.com Labcorp Announces 2025 Second Quarter Results Raises Full-Year Guidance • Financial results from...
2025-04-10Market Movement
-5.15%Market/Sector Move -5.15%
2024-08-01SEC Filing (8-K)
+8.33%Excerpt: (EX-99.1) Document FOR IMMEDIATE RELEASE Contact: Christin O'Donnell (investors) – 336-436-5076 Investor@Labcorp.com Kimbrel Arculeo (media) – 336-436-8263 Media@Labcorp.com Labcorp Announces 2024 Second Quarter Results Updates...
2022-10-27SEC Filing (8-K)
-5.93%Excerpt: (EX-99.1) Document FOR IMMEDIATE RELEASE Contact: Chas Cook (investors) – 336-436-5076 Investor@Labcorp.com Rachael Valdez (media) – 336-436-8263 Media@Labcorp.com Labcorp Announces 2022 Third Quarter Results Company Updates...
Valuation Table
9.8/10Decision Grade
Scenario Range
$223
Bear
$318
Base
$378
Bull
$281