DGXNEUTRAL

DGX EV/EBITDA Analysis

14.3x

Higher than 41% of Healthcare sector peers

Updated 581h ago·SEC filings & market data

Key Takeaway

EV/EBITDA is a valuation ratio that compares a company’s enterprise value (market cap plus debt minus cash) to its operating earnings before interest, taxes, depreciation, and amortization.

Sector Performance

41th percentile

DGX

14.3x

Sector Median

15.7x

Sector Avg

29.2x

Prior Period

14.1x(Jul 2026)

↓ Declining

📊

Deep Analysis

EV/EBITDA is a valuation ratio that compares a company’s enterprise value (market cap plus debt minus cash) to its operating earnings before interest, taxes, depreciation, and amortization.

At 14.3x, Quest Diagnostics is valued below the healthcare sector median of 15.9x, placing it in the 41st percentile among peers. The metric has increased over the last eight quarters, with the most recent quarter-over-quarter change at +1.4%; year-over-year data is not available, but the historical sequence (14.3x, 14.1x, 13.6x) shows a clear upward path. The combination of a below-median valuation with an increasing trend means the stock is currently attractively priced relative to peers, but the direction suggests the discount is narrowing. This creates a moderate opportunity for entry now, with the risk that continued increases could erase the valuation gap. The metric supports the overall NEUTRAL verdict: it neither confirms a cheap bargain nor signals an overpriced stock, aligning with a hold or balanced view.

Frequently Asked Questions

What does the EV/EBITDA tell investors about DGX?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does DGX's EV/EBITDA compare to its sector?

DGX's EV/EBITDA of 14.3x compares to a Healthcare sector median of 15.7x, placing it in the 41th percentile.

Who are DGX's closest peers by EV/EBITDA?

The closest Healthcare peers by EV/EBITDA include: CAH (14.4x), RVTY (17.0x), AMGN (14.0x), ALGN (13.5x), ABT (19.5x).

📚

Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.