EV/EBITDA

Quest Diagnostics' current EV/EBITDA of 13.6x means that its enterprise value (total market value plus debt minus cash) is 13.6 times its earnings before interest, taxes, depreciation, and amortization—a measure of how cheaply the market prices the company's operating cash flow.

This is slightly below the Healthcare sector median of 14.1x, placing DGX in the 44th percentile among its peers, indicating it is valued near the lower end of the sector. The year-over-year change is not available, but the quarter-over-quarter change shows an increase of +8.2%, rising from 12.6x to 13.6x. While the absolute level is below the sector median (suggesting a potential value opportunity), the recent upward trend signals that the valuation is compressing that discount. This combination of a below-median multiple with a rising trend implies moderate risk that the valuation advantage may shrink further, but no extreme opportunity. The metric supports the overall NEUTRAL verdict because the valuation is neither clearly cheap nor expensive relative to peers, and the direction does not strongly indicate a mispricing.

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