Labcorp HoldingsLH +0.76%79 Interest Coverage is 7.03 as of Mar. 2026, which is 18% above its 10-year median of 5.96. GuruFocus rates LH with a GF Score™ of 79/100 and a GF Value™ of $271.41 (Fairly Valued). The stock has 6 warning signs investors should review. Among 95 Medical Diagnostics & Research companies, Labcorp Holdings ranks worse than 56.84% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Labcorp Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was $387 Mil. Labcorp Holdings's Interest Expense for the
three
months ended in Mar. 2026 was $-55 Mil.
Labcorp Holdings's interest coverage for the quarter that ended in Mar. 2026 was 7.03.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Labcorp Holdings's Interest Coverage or its related term are showing as below:
LH'
s Interest Coverage Range Over the Past 10 Years
Min: 5.46 Med: 5.96 Max: 14.51
Current: 7.04
LH's Interest Coverage is ranked worse than 56.84% of 95
companies
in the Medical Diagnostics & Research industry
Industry Median: 9.05
vs LH: 7.04
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Labcorp Holdings Interest Coverage Related Terms
Labcorp Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Labcorp Holdings's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LH vs DGX, MTD, ILMN: Interest Coverage Comparison
For the Diagnostics & Research subindustry, Labcorp Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Labcorp Holdings Interest Coverage vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Labcorp Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Labcorp Holdings's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Labcorp Holdings (LH) has a Interest Coverage of 7.03 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Labcorp Holdings and its competitors. This is 18% above median its historical median of 5.96. Over the past decade, Labcorp Holdings' Interest Coverage has ranged from 5.46 to 14.51. According to the industry distribution chart, Labcorp Holdings ranks #54 out of 95 companies in the Medical Diagnostics & Research industry, placing it in the top 56.8%.
Is Labcorp Holdings' Interest Coverage too high?
Labcorp Holdings' current Interest Coverage of 7.03 is 18% above median its 10-year median of 5.96. Over the past 10 years, this metric has ranged from a low of 5.46 to a high of 14.51. The Medical Diagnostics & Research industry median Interest Coverage is 9.05. Labcorp Holdings' value of 7.03 is 22.3% below this industry median. Based on the distribution chart, Labcorp Holdings ranks #54 out of 95 companies in the Medical Diagnostics & Research industry, which is below the industry midpoint. Overall, Labcorp Holdings has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Labcorp Holdings' Interest Coverage compare to DGX and MTD?
According to the Medical Diagnostics & Research industry distribution chart, Labcorp Holdings ranks #54 out of 95 companies for Interest Coverage. This places Labcorp Holdings in the lower half of its industry. The industry median Interest Coverage is 9.05. Labcorp Holdings' value of 7.03 is 22.3% below this benchmark. Historically, Labcorp Holdings' own Interest Coverage has ranged from 5.46 to 14.51 over the past decade. While the company's 10-year median is 5.96 vs. the industry median of 9.05, Labcorp Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Medical Diagnostics & Research company?
The median Interest Coverage among Medical Diagnostics & Research companies is 9.05, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Labcorp Holdings's current Interest Coverage of 7.03 is 22.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Labcorp Holdings and its competitors. For the Medical Diagnostics & Research industry, the median Interest Coverage is 9.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labcorp Holdings's current Interest Coverage is 7.03, which is 18% above median its own 10-year median of 5.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labcorp Holdings stock overvalued right now?
Based on GuruFocus' analysis, Labcorp Holdings (LH) is currently considered Fairly Valued. The stock's GF Value™ is $271.41, compared to a current price of $267.20 — trading 1.6% below its estimated fair value. The current Interest Coverage is 7.03, which is 18% above median its 10-year median of 5.96 and 22.3% below the Medical Diagnostics & Research industry median of 9.05. Labcorp Holdings' overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Labcorp Holdings (LH), the current Interest Coverage is 7.03 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Labcorp Holdings (LH) Overvalued in 2026?
Based on GuruFocus' analysis, Labcorp Holdings stock appears to be undervalued.
The current stock price of $267.20 is trading 1.6% below its estimated GF Value™ of $271.41.
GuruFocus considers Labcorp Holdings to be Fairly Valued.
Key valuation signals for LH:
Interest Coverage: 7.03 (18% above median its 10-year median of 5.96)
GF Value™: $271.41 vs. price of $267.20 (1.6% below fair value)
Industry Position: 22.3% below the Medical Diagnostics & Research median (#54 of 95)
No single metric tells the full story. See the LH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Labcorp is one of the nation's two largest independent clinical laboratories, with roughly 20% of the independent lab market. The company operates approximately 2,000 patient-service centers, offering a broad range of 5,000 clinical lab tests, ranging from uncomplicated routine blood and urine screens to complex oncology and genomic testing.
79GF Score
Get the complete analysis for LH
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