Is IQVIA Holdings Inc (IQV) overvalued?
On Equity Rank's model estimate, IQV trades 15% above its fair value. IQVIA Holdings Inc (IQV) last closed at $271.83; the multi-method model fair value is $237.06.
| Price | Model fair value | Price vs model |
|---|---|---|
| $271.83 | $237.06 | 15% above |
What the answer rests on
- 3 of 9 valuation methods put IQV's value above its price and 6 put it below, so the methods disagree.
- To justify today's price, IQV's free cash flow would need to grow about 8.7% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 8.9% a year.
- IQV trades at 32.2 times its last year's earnings, against a median of 38.3 for 26 profitable Life Sciences Tools companies.
- Over the past year the price sat below the model fair value on 89% of trading days. The gap ranged from 30% below to 16% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind IQV's fair value · What prices assume · Other companies