Is Labcorp Holdings, Inc. overvalued or undervalued?

As of 6 February 2025, the valuation grade for Labcorp Holdings, Inc. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 28.86, an EV/EBITDA of 14.80, and a PEG ratio of 0.0. In comparison, its peers in the Pharmaceuticals & Biotechnology industry exhibit varying valuations, but Labcorp's P/E ratio aligns closely with industry standards, suggesting it is competitively positioned.
In terms of recent performance, Labcorp has outperformed the S&P 500 year-to-date with a return of 20.86% compared to the index's 12.22%, although it lags behind the S&P 500 over longer periods, such as the last three and five years. This mixed performance reinforces the notion that while the company is currently fairly valued, its long-term growth may need to be closely monitored against broader market trends.