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Laboratory of America Holdings (Laboratory of America Holdings) Intrinsic Value: Projected FCF

: $239.04 (As of Today)
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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-19), Laboratory of America Holdings's Intrinsic Value: Projected FCF is $239.04. The stock price of Laboratory of America Holdings is $199.45. Therefore, Laboratory of America Holdings's Price-to-Intrinsic-Value-Projected-FCF of today is 0.8.

The historical rank and industry rank for Laboratory of America Holdings's Intrinsic Value: Projected FCF or its related term are showing as below:

LH' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.65   Med: 0.85   Max: 1.16
Current: 0.83

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Laboratory of America Holdings was 1.16. The lowest was 0.65. And the median was 0.85.

LH's Price-to-Projected-FCF is ranked better than
73.96% of 96 companies
in the Medical Diagnostics & Research industry
Industry Median: 1.565 vs LH: 0.83

Laboratory of America Holdings Intrinsic Value: Projected FCF Historical Data

The historical data trend for Laboratory of America Holdings's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Laboratory of America Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 181.86 202.93 232.59 257.59 239.04

Laboratory of America Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 257.59 254.99 239.36 233.30 239.04

Competitive Comparison

For the Diagnostics & Research subindustry, Laboratory of America Holdings's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Laboratory of America Holdings Price-to-Projected-FCF Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Laboratory of America Holdings's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Laboratory of America Holdings's Price-to-Projected-FCF falls into.



Laboratory of America Holdings Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Laboratory of America Holdings's Free Cash Flow(6 year avg) = $1,484.99.

Laboratory of America Holdings's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*1484.992+7875*0.8)/85.500
=239.04

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Laboratory of America Holdings  (NYSE:LH) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Laboratory of America Holdings's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=199.45/239.03679482099
=0.83

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Laboratory of America Holdings Intrinsic Value: Projected FCF Related Terms

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Laboratory of America Holdings (Laboratory of America Holdings) Business Description

Traded in Other Exchanges
Address
358 South Main Street, Burlington, NC, USA, 27215
Laboratory Corp. of America is one of the nation's two largest independent clinical laboratories, with roughly 20% of the independent lab market. The company operates approximately 2,000 patient-service centers, offering a broad range of 5,000 clinical lab tests, ranging from routine blood and urine screens to complex oncology and genomic testing.
Executives
Peter J Wilkinson officer: SVP, Chief Accounting Officer C/O PHARMACEUTICAL PRODUCT DEVELOPMENT, 929 NORTH FRONT STREET, WILMINGTON NC 28401
Kerrii B Anderson director WENDY'S INTERNATIONAL, INC, 4288 WEST DUBLIN-GRANVILLE RD., DUBLIN OH 43017
Van Der Vaart Sandra D officer: SVP, Global General Counsel 531 SOUTH SPRING STREET, BURLINGTON NC 27215
Paul Rothman director 6 MEADOW ROAD, BALTIMORE MD 21212
Paul R Kirchgraber officer: CEO, Covance Drug Development 531 SOUTH SPRING STREET, BURLINGTON NC 27215
Mark S Schroeder officer: EVP, President-Diagnostics Lab 531 SOUTH SPRING STREET, BURLINGTON NC 27215
Megan D. Bailey officer: EVP, Chief Strategy Officer 531 SOUTH SPRING STREET, BURLINGTON NC 27215
Jonathan P. Divincenzo officer: EVP, Pres, Central Labs & Intl 940 WINTER STREET, PERKINELMER, INC. LEGAL DEPARTMENT, WALTHAM MA 02451
Anita Z Graham officer: EVP, CHRO C/O THE ADT CORPORATION, 1501 YAMATO ROAD, BOCA RATON FL 33431
Thomas Pike officer: Pres & CEO Clinical Business C/O ACCENTURE, 161 N. CLARK STREET, 23RD FLOOR, CHICAGO IL 60601
Kirsten Marie Kliphouse director 531 SOUTH SPRING STREET, BURLINGTON NC 27215
Glenn A Eisenberg officer: Chief Financial Officer, EVP P O BOX 1017, CHARLOTTE NC 28201-1017
Brian J Caveney officer: SVP, Chief Medical Officer 531 SOUTH SPRING STREET, BURLINGTON NC 27215
R Sanders Williams director DUKE UNIVERSITY SCHOOL OF MEDICINE, TRENT DRIVE, DURHAM NC 27706
Amy B. Summy officer: EVP, Chief Marketing Officer 531 SOUTH SPRING STREET, BURLINGTON NC 27215