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Laboratory of America Holdings PE Ratio

: 9.27 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2021-10-16), Laboratory of America Holdings's share price is $271.60. Laboratory of America Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $29.29. Therefore, Laboratory of America Holdings's PE Ratio for today is 9.27.

Good Sign:

Laboratory Corp of America Holdings stock PE Ratio (=9.27) is close to 10-year low of 8.83


The historical rank and industry rank for Laboratory of America Holdings's PE Ratio or its related term are showing as below:

NYSE:LH' s PE Ratio Range Over the Past 10 Years
Min: 8.83   Med: 17.3   Max: 55.64
Current: 9.27

8.83
55.64

During the past 13 years, the highest PE Ratio of Laboratory of America Holdings was 55.64. The lowest was 8.83. And the median was 17.30.


NYSE:LH's PE Ratio is ranked higher than
65% of the 43 Companies
in the Medical Diagnostics & Research industry.

( Industry Median: 26.50 vs. NYSE:LH: 9.27 )

Laboratory of America Holdings's Earnings per Share (Diluted) for the three months ended in Jun. 2021 was $4.76. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $29.29.

As of today (2021-10-16), Laboratory of America Holdings's share price is $271.60. Laboratory of America Holdings's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $29.29. Therefore, Laboratory of America Holdings's PE Ratio without NRI for today is 9.27.

During the past 13 years, Laboratory of America Holdings's highest PE Ratio without NRI was 55.64. The lowest was 8.83. And the median was 17.30.

Laboratory of America Holdings's EPS without NRI for the three months ended in Jun. 2021 was $4.76. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $29.29.

During the past 12 months, Laboratory of America Holdings's average EPS without NRI Growth Rate was 698.10% per year. During the past 3 years, the average EPS without NRI Growth Rate was 10.40% per year. During the past 5 years, the average EPS without NRI Growth Rate was 21.30% per year. During the past 10 years, the average EPS without NRI Growth Rate was 9.50% per year.

During the past 13 years, Laboratory of America Holdings's highest 3-Year average EPS without NRI Growth Rate was 82.80% per year. The lowest was -30.00% per year. And the median was 15.10% per year.

Laboratory of America Holdings's EPS (Basic) for the three months ended in Jun. 2021 was $4.80. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2021 was $29.52.


Laboratory of America Holdings PE Ratio Historical Data

The historical data trend for Laboratory of America Holdings's PE Ratio 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.

* Premium members only.

Laboratory of America Holdings Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.82 13.51 14.68 20.26 12.82

Laboratory of America Holdings Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.26 21.92 12.82 9.48 9.42

Competitive Comparison

For the Diagnostics & Research subindustry, Laboratory of America Holdings's PE Ratio, along with its competitors' market caps and PE Ratio 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.

   

Laboratory of America Holdings PE Ratio Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Laboratory of America Holdings's PE Ratio distribution charts can be found below:

* The bar in red indicates where Laboratory of America Holdings's PE Ratio falls into.



Laboratory of America Holdings PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Laboratory of America Holdings's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=271.60/29.290
=9.27

Laboratory of America Holdings's Share Price of today is $271.60.
Laboratory of America Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $29.29.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Laboratory of America Holdings  (NYSE:LH) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Laboratory of America Holdings PE Ratio Related Terms

Thank you for viewing the detailed overview of Laboratory of America Holdings's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Laboratory of America Holdings Business Description

Laboratory of America Holdings logo
Industry
Traded in Other Exchanges
Address
358 South Main Street, Burlington, NC, USA, 27215
Laboratory Corporation of America 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 routine blood and urine screens to complex oncology and genomic testing. With the addition of Covance, LabCorp also has a sizable footprint in the global contract research organization market.
Executives
Caveney Brian J officer: EVP, President of Diagnostics 531 SOUTH SPRING STREET BURLINGTON NC 27215
Wilkinson Peter J officer: SVP, Chief Accounting Officer C/O PHARMACEUTICAL PRODUCT DEVELOPMENT 929 NORTH FRONT STREET WILMINGTON NC 28401
Williams R Sanders director DUKE UNIVERSITY SCHOOL OF MEDICINE TRENT DRIVE DURHAM NC 27706
Van Der Vaart Sandra D officer: EVP, Chief Legal Officer 531 SOUTH SPRING STREET BURLINGTON NC 27215
King David P director 531 SOUTH SPRING STREET BURLINGTON NC 27215
Kirchgraber Paul R officer: CEO, Covance Drug Development 531 SOUTH SPRING STREET BURLINGTON NC 27215
Schroeder Mark S officer: EVP, President-Diagnostics Lab 531 SOUTH SPRING STREET BURLINGTON NC 27215
Eisenberg Glenn A officer: Chief Financial Officer, EVP P O BOX 1017 CHARLOTTE NC 28201-1017
Berberian Lance officer: EVP, CIO & CTO PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BERBERIAN LANCE a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Summy Amy B. officer: EVP, Chief Marketing Officer 531 SOUTH SPRING STREET BURLINGTON NC 27215
Seltz Judith C officer: EVP, CHRO 531 SOUTH SPRING STREET BURLINGTON NC 27215
Belingard Jean-luc director 1401 HARBOR BAY PARKWAY ALAMEDA CA 94502
Gilliland Dwight Gary director 531 SOUTH SPRING STREET BURLINGTON NC 27215
Kong Garheng director 712 COLLEGE AVENUE MENLO PARK CA 94025
Neupert Peter M director 13920 SE EASTGATE WAY STE 300 BELLEVUE WA 98005

Laboratory of America Holdings Headlines

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