IDXX Fair Value Estimate
$374.0434.3% overvalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Idexx Laboratories Inc
Exchange: NASDAQSector: HealthcareIndustry: Diagnostics & Research
IDEXX Laboratories, Inc., is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions—to advance medical care, improve efficiency, and build thriving practices. Our innovations also help ensure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500 ® Index. Headquartered in Maine, IDEXX employs approximately 11,000 people and offers solutions and products to customers in more than 175 countries and territories.
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Net income compounded at 16.3% annually over 6 years.
Current Price
$569.55
+0.87%GoodMoat Value
$374.04
34.3% overvaluedProfile
Valuation (TTM)
Market Cap$45.48B
P/E42.93
EV$46.96B
P/B28.33
Shares Out79.85M
P/Sales10.57
Revenue$4.30B
EV/EBITDA30.66
Idexx Laboratories Inc (IDXX) Valuation
GoodMoat Analysis
From a value investing perspective, the current price for Idexx Laboratories is unfavourable. The stock trades at a significant premium to its estimated fair value, offering a negative margin of safety, and its P/E multiple is extremely high relative to its own history and growth rate.
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The valuation assessment reveals a clear disconnect between price and intrinsic value. The current price of $575.72 is 54% above the GoodMoat Target of $374.04. According to the framework's Margin of Safety (MoS) bands, this represents a negative MoS, placing it firmly in the 'Unfavourable' category, which requires a MoS of at least 20% to be considered favourable. The forward P/E of 43.4x is exceptionally high, especially when compared to the company's 14.3% revenue growth. This results in a PEG ratio well above 1.0, indicating the market is pricing in near-perfect future execution. While the company demonstrates high quality with strong profitability metrics like a 31.6% operating margin and 66.0% ROE, the valuation multiples do not provide the necessary margin of safety a value investor seeks. The stock appears expensive relative to its own quality, trading at a premium that leaves no room for error or unforeseen challenges.
IDXX Valuation Metrics
FCF$1.04B
FCF Growth Rate22.81%
EPS Growth (CAGR)22.81%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →IDXX Valuation & Fair Value Analysis
Idexx Laboratories Inc (IDXX) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Idexx Laboratories Inc is $374.04. The current stock price is $569.55, suggesting the stock is 52.3% overvalued.
The price-to-earnings (P/E) ratio is 42.93. Price-to-book ratio is 28.33. Price-to-sales ratio is 10.57. Enterprise value to EBITDA is 30.66. PEG ratio is 2.47.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Idexx Laboratories Inc's intrinsic value.