LH
Laboratory Corporation of America Holdings
Price:  
249.62 
USD
Volume:  
1,139,598
United States | Health Care Providers & Services

LH Fair Value

-25.4 %
Upside

What is the fair value of LH?

As of 2025-07-12, the Fair Value of Laboratory Corporation of America Holdings (LH) is 186.18 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 249.62 USD, the upside of Laboratory Corporation of America Holdings is -25.4%.

Is LH a good investment?

With the market price of 249.62 USD and our fair value calculation, Laboratory Corporation of America Holdings (LH) is not a good investment. Investing in LH stocks now will result in a potential loss of 25.4%.

249.62 USD
Stock Price
186.18 USD
Fair Price
FAIR VALUE CALCULATION

LH Fair Value

Peter Lynch's formula is:

LH Fair Value
= Earnings Growth Rate x TTM EPS
LH Fair Value
= 21.3 x 8.73
LH Fair Value
= 186.18

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income1,556.12,377.31,279.14187461,275
YoY growth88.9%52.8%-46.2%-67.3%78.5%21.3%

LH Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Quest Diagnostics Inc18,766873.73-56.1%
DaVita Inc10,76311.486.4-39.4%
Chemed Corp6,72821.1178.48-61.2%
LHC Group Inc5,270250.78-70.1%
CorVel Corp5,0211.929.93-69.4%
Option Care Health Inc4,8931.332.649.2%
Amedisys Inc3,1892.768.44-29.6%
Addus Homecare Corp2,0414.3105.81-4.6%
Apollo Medical Holdings Inc1,959123.86-41.5%
MEDNAX Inc1,127-1-4.79-136.5%

LH Fair Value - Key Data

Market Cap (mil)20,893
P/E28.6x
Forward P/E22.7x
EPS8.73
Avg earnings growth rate21.3%
TTM earnings731

LH Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.