DGXNEUTRAL

DGX P/E Ratio Analysis

20.0x

Higher than 13% of Healthcare sector peers

Updated 581h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 20.0x means investors pay $20 for every $1 of trailing earnings per share, a common gauge of how expensive a stock is relative to its profits.

Sector Performance

13th percentile

DGX

20.0x

Sector Median

28.5x

Sector Avg

35.3x

Prior Period

20.8x(Jul 2026)

↑ Improving

📊

Deep Analysis

The P/E ratio of 20.0x means investors pay $20 for every $1 of trailing earnings per share, a common gauge of how expensive a stock is relative to its profits.

This is well below the sector median of 28.5x, placing DGX in the 12th percentile among healthcare peers, so it trades cheaper than most comparable companies. The year-over-year change is N/A, while the quarter-over-quarter change is -3.8%, with the metric falling from 20.8x to 20.0x in the latest available data. The combination of a low P/E relative to peers and a slight recent contraction suggests muted earnings expectations or limited upside priced into the stock, which reduces valuation risk but also signals a lack of growth premium. Given the modest level and small downward move, the metric supports the overall NEUTRAL verdict, as it neither flags a clear bargain nor a rich entry point.

Frequently Asked Questions

What does the P/E Ratio tell investors about DGX?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does DGX's P/E Ratio compare to its sector?

DGX's P/E Ratio of 20.0x compares to a Healthcare sector median of 28.5x, placing it in the 13th percentile.

Who are DGX's closest peers by P/E Ratio?

The closest Healthcare peers by P/E Ratio include: ABT (28.5x), CCLD (28.3x), ALGN (29.1x), AZN (27.0x), AMGN (24.7x).

📚

Learn More About P/E Ratio

DCF Valuation: How to Estimate What a Stock Is Actually Worth

Discounted Cash Flow is the most rigorous way to value a company. It's also the most misunderstood. Here's a plain-English walkthrough with a real example.

The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.