IDEXX Laboratories, Inc. (IDXX) Stock Valuation — PE Analysis
Medical - Diagnostics & Research · NASDAQ
Current Price
$560.88
PE Ratio (TTM)
41.0x
Intrinsic Value
$781.05
+28.2% margin of safety
COMPETITIVE MOAT
↑Diagnostic Test Dominance
IDEXX holds a commanding position in veterinary diagnostics with a vast menu of proprietary tests. This extensive offering creates high switching costs for clinics heavily reliant on their integrated systems.
↑Integrated Workflow Solutions
The company's comprehensive suite of diagnostic instruments, software, and consumables creates a sticky ecosystem. This integration streamlines laboratory operations, making it difficult for competitors to displace.
↑Data Network Effects
IDEXX's large installed base generates a wealth of anonymized diagnostic data. This data fuels AI-driven insights and product development, further enhancing the value of their platform.
INVESTMENT RISKS
↓Emerging Competitive Technologies
New diagnostic platforms or point-of-care solutions could challenge IDEXX's market share. Competitors may offer more advanced or cost-effective alternatives, eroding their current dominance.
↓AI Integration Pace
While IDEXX is touting AI, the speed and effectiveness of its integration into existing workflows are critical. Failure to keep pace with AI advancements could leave them vulnerable to more agile competitors.
↓Regulatory Scrutiny
Changes in veterinary diagnostic regulations or approval processes could impact IDEXX's product pipeline and market access. Stringent oversight may slow innovation or introduce compliance burdens.
Base case
IDXX base case PE valuation
A base case PE valuation for IDXX estimates a fair value of about $781.05 per share, against a current price of $560.88. The model assumes 15.1% annual earnings growth, a 41x target PE multiple, and a 10% discount rate.
Intrinsic Value
$781.05
Margin of safety
+28.2%
Expected annual return
+6.8%
Base case assumptions: 15.1% annual earnings growth, 41x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the IDXX PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for IDEXX Laboratories, Inc. respond.
Open PE Calculator for IDXXCompany Overview
IDEXX Laboratories, Inc. is a global enterprise focused on creating, producing, and distributing a wide array of products and services. Its primary client base includes companion animal veterinary practices, the livestock and poultry industries, dairy operations, and water quality testing sectors. The company organizes its operations across several key divisions: the Companion Animal Group (CAG), Water Quality Products, Livestock, Poultry, and Dairy (LPD), and additional segments. For companion animals, IDEXX offers a comprehensive suite of point-of-care veterinary diagnostic tools, such as instruments, consumables, and rapid assay kits. It also provides reference laboratory diagnostic and consultation services, alongside practice management and diagnostic imaging solutions for veterinarians. Furthermore, the company supports the biomedical research community with health monitoring, biological materials testing, and laboratory animal diagnostic instruments and services. In the livestock, poultry, and dairy markets, IDEXX supplies diagnostic and health-monitoring solutions. Its water testing portfolio includes products designed to detect various microbiological contaminants, notably the Colilert, Colilert-18, and Colisure tests for total coliforms and E. coli, as well as Enterolert, Pseudalert, Filta-Max, Filta-Max xpress, Legiolert, and Quanti-Tray products. Beyond these, IDEXX extends its reach to human point-of-care medical diagnostics, offering electrolyte and blood gas analyzers, and SARS-CoV-2 RT-PCR tests. Other key offerings encompass in-clinic chemistry, blood and urine chemistry, hematology, and SediVue Dx analyzers, as well as SNAP rapid assay test kits. Veterinary software and services for both independent clinics and large corporate veterinary groups are also part of its offerings. The company distributes its extensive product and service catalog through its own dedicated marketing, customer service, sales, and technical service teams, supplemented by independent distributors and other resellers. IDEXX Laboratories, Inc. was established in 1983 and maintains its headquarters in Westbrook, Maine.
Financial Metrics — IDXX PE Stock Valuation Data
PE Ratio (TTM)
41.0x
PEG Ratio
1.61
Earnings Yield
2.44%
ROE (TTM)
70.9%
Revenue/Share (TTM)
$55.51
Debt/Equity
0.69x
Frequently Asked Questions
What is the PE ratio of IDXX?
The trailing twelve-month PE ratio of IDXX reflects how much investors pay per dollar of IDEXX Laboratories, Inc.'s earnings. This metric is most useful when compared to Medical - Diagnostics & Research peers and the company's own historical range.
Is IDXX overvalued based on PE ratio?
IDXX's PE of 41.0x combined with a PEG ratio of 1.61 provides a growth-adjusted perspective. A PEG near 1.0 suggests the PE ratio is reasonably justified by the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Diagnostics & Research, a DCF analysis may be more appropriate.
How do I value IDXX stock using PE ratio?
To value IDEXX Laboratories, Inc. using PE: (1) Compare the current PE (41.0x) against the Medical - Diagnostics & Research median to assess relative pricing, (2) check the PEG ratio (1.61) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of IDXX?
IDXX's PEG ratio is 1.61, calculated by dividing the PE ratio (41.0x) by the expected earnings growth rate. A PEG near 1.0 suggests the stock is fairly priced relative to growth. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for IDXX stock valuation?
PE ratio gives a quick relative read — how IDXX is priced versus Medical - Diagnostics & Research peers. DCF provides an absolute value based on projected free cash flows. For IDXX, with a strong ROE of 70.9%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See IDXX DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value IDXX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.