Quest Diagnostics Inc. (DGX) intrinsic value & 10-year financials

Quest Diagnostics Inc. (DGX) has a Graham intrinsic value of $179.52 per share. At $235.00 on Oct 17, 2026, the stock trades 31% above that value. Over the last 10 fiscal years revenue grew 4.4% a year to $11.0B, with an average return on invested capital of 11.9%.

Graham intrinsic value
$179.52
Share price (Oct 17, 2026)
$235.00
Price vs Graham value
31% above
Market cap
$26.6B
Revenue (FY2025)
$11.0B
Revenue growth (10-yr CAGR)
4.4%
ROIC (10-yr avg)
11.9%
Free cash flow (FY2025)
$1.4B

DGX 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $11.0B $992.0M $8.75 $1.4B 14.1% 9.9%
FY2024 $9.9B $871.0M $7.69 $909.0M 13.6% 9.4%
FY2023 $9.3B $854.0M $7.49 $864.0M 13.6% 10.0%
FY2022 $9.9B $946.0M $7.97 $1.3B 14.4% 11.7%
FY2021 $10.8B $2.0B $15.55 $1.8B 22.1% 19.1%
FY2020 $9.4B $1.4B $10.47 $1.6B 20.9% 16.5%
FY2019 $7.7B $858.0M $6.28 $843.0M 15.9% 11.3%
FY2018 $7.5B $736.0M $5.29 $817.0M 14.6% 10.4%
FY2017 $7.4B $772.0M $5.50 $923.0M 15.7% 10.7%
FY2016 $7.5B $645.0M $4.51 $776.0M 17.0% 9.6%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

Quest Diagnostics has demonstrated mature, steady growth, with revenue compounding at 4.4% annually over the past decade.

Quest Diagnostics returns on capital have been average, hovering around 11.9% ROIC over the decade.

Over the decade, Quest Diagnostics shows that management has aggressively returned capital to shareholders by retiring 20.4% of outstanding shares.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, Quest Diagnostics is modeled at 7.6% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $179.52 per share.

DGX stock: frequently asked questions

What is the intrinsic value of Quest Diagnostics Inc. (DGX) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 7.6% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, DGX's intrinsic value is about $179.52 per share.

Is DGX stock undervalued?

At $235.00 (close on Oct 17, 2026), DGX trades 31% above its Graham value of $179.52. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has Quest Diagnostics Inc. grown?

Revenue went from $7.5B in fiscal 2016 to $11.0B in fiscal 2025, a compound annual growth rate of 4.4%. Net income was $992.0M in fiscal 2025.

Does Quest Diagnostics Inc. generate free cash flow?

Quest Diagnostics Inc. generated $1.4B of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is DGX's return on invested capital?

Average ROIC over the last 10 fiscal years was 11.9%, and average return on equity was 17.1%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this DGX data come from?

From Quest Diagnostics Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Jul 23, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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