Quest Diagnostics Inc (DGX)
Fair ValueFundamental
73
Price
$233.07
Market Cap
$26.23B
Part 1 · What the company is worth
Overview
Quest Diagnostics Incorporated provides diagnostic testing and services in the United States. The company develops and delivers diagnostic information services, such as routine, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It also provides services under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands to physicians, hospitals, patients and consumers, health plans, government agencies, employers, retailers, pharmaceutical companies and insurers commercial clinical laboratories, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile phlebotomists, nurses, and other health and wellness professionals. In addition, the company offers risk assessment services for the life insurance industry; healthcare IT healthcare providers and payers; testing and medical director services at hospital laboratories; test offerings in cardiometabolic and endocrine; cancer; clinical drug monitoring and toxicology; infectious disease, including autoimmune; neurology diagnostics, including Alzheimer's disease; and women's health, such as prenatal genetic; workplace drug testing, testing urine, hair, and oral fluid specimens services; and employer population health services, including biometric screenings, flu shots, and related preventative services. Further, it provides population health solutions; extended care services; develops in vitro diagnostic tests; laboratory diagnostic information and digital health connectivity systems; underwriting support services, including data gathering, paramedical examinations, and clinical laboratory testing and analytics; and national specimen collection and health data solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.
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Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
Labcorp is the other national US clinical laboratory network, selling the same routine and specialty test menu to the same physicians, hospitals, health plans and employers, and competing directly for the same managed-care contracts and hospital outreach deals.
Through Sonic Healthcare USA it runs a large network of regional clinical laboratories serving American physicians and hospitals, the same customers Quest bids for, and it is also Quest's main rival in Canada after the LifeLabs acquisition.
As one of the largest US reference laboratories, it takes in specialty and esoteric testing sent out by hospitals and physician practices across the country, the higher-value volume Quest's advanced diagnostics business targets.
A non-profit national reference laboratory owned by the University of Utah that competes for the same hospital and health-system send-out testing contracts Quest pursues with its hospital lab services.
It sells oncology and molecular testing to US pathologists, oncologists and hospitals, overlapping with the cancer and genetic testing line Quest is expanding within its advanced diagnostics.
Its clinical diagnostics division runs routine and specialty testing laboratories, including in the United States, competing for the same physician and hospital testing volumes as Quest.
Balance Sheet & Liquidity
Revenue
$11.56B
Trailing 12 months (through 6/30/2026)
Net Income
$1.06B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$1.36B
Total Equity
$7.17B
Total Liabilities
$9.02B
Current Ratio
1.59
Interest Coverage
6.37
Debt/EBITDA
3.00
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$222.23
Current Price
$233.07
Margin of Safety
-4.9%
Fair Value Range
$155.33 - $289.13
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
24.74
ROE
13.8%
P/B Ratio
3.42
P/FCF
19.07
Gross Margin
33.1%
ROIC
8.5%
Profitability Radar
Value Creation (Economic Moat)
ROIC
8.5%
WACC
7.1%
ROIC − WACC
+1.4 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (20)
- EPS shows upward trend
- EPS CAGR 9.39%
- Price CAGR 9.85%
- ROIC 8.5%
- Gross Margin 33.1%
- P/FCF 19.07
- Debt/Equity ratio
- Operating Margin 14.1%
- Positive Free Cash Flow
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- ROE 14.5%
- Analyst Consensus 57% Buy
- Earnings Surprise avg 4.8%
- Earnings Quality (OCF/NI) 1.79
- Share Dilution 0.1%
- Net Margin Trend 9.2% vs 9.0%
- Piotroski F-Score 8/9
Failed (6)
- P/B Ratio 3.42
- CapEx intensity
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- Revenue Growth 5Y 3.2%
Unavailable (2)
- Dividend Payout NaN%
- PEG Ratio (need PE > 0 and growth > 0)
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Share count is stable
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. James E. Davis | Chairman, CEO & President | 62 |
| Mr. Sam A. Samad | Executive VP & CFO | 55 |
| Mr. Michael E. Prevoznik J.D. | Senior VP & General Counsel | 63 |
| Ms. Catherine T. Doherty | Executive Vice President of Regional Businesses | 62 |
| Mr. Karthik Kuppusamy Ph.D. | Senior Vice President of Clinical Solutions | 55 |
| Mr. Michael J. Deppe | Senior VP, Corporate Controller & Chief Accounting Officer | 58 |
| Mr. Murali Balakumar | Senior VP and Chief Information & Digital Officer | - |
| Ms. Damini Chokshi | Vice President of Investor Relations | - |
| Ms. Kristin Lee Wallace Esq. | Senior VP & Chief Compliance Officer | - |
| Mr. Garry Clark | Senior VP and Chief Marketing & Communications Officer | - |
Audit Risk
6
Board Risk
7
Compensation Risk
2
Shareholder Rights Risk
2
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-26
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-23
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-07-23
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for DGX, sourced from Markets Gazette.