Is Quest Diagnostics, Inc. overvalued or undervalued?

As of 5 June 2025, the valuation grade for Quest Diagnostics, Inc. has moved from expensive to fair. The company is currently fairly valued. Key ratios include a P/E ratio of 28, an EV to EBITDA of 17.29, and a PEG ratio of 9.40. In comparison to peers, Laboratory Corp. of America Holdings has a P/E of 28.16, while DaVita, Inc. shows a lower P/E of 10.06, indicating that Quest Diagnostics is positioned competitively within its sector.
Despite a recent stock return of 29.33% over the past year compared to the S&P 500's 10.26%, the current valuation suggests that the stock is appropriately priced given its performance and financial metrics. The company's ROE stands at 14.38%, further supporting its fair valuation status in the market.