IQVIA Holdings Inc. (IQV) Stock Valuation — DCF Analysis
Medical - Diagnostics & Research · NYSE
Current Price
$181.46
Intrinsic Value
$263.57
+31.2% margin of safety
COMPETITIVE MOAT
↑Massive Data & Analytics Platform
IQVIA possesses an unparalleled, proprietary dataset of real-world evidence. This extensive data, combined with advanced analytics, creates a significant barrier to entry for competitors.
↑Deep Customer Relationships
Long-standing partnerships with pharmaceutical and biotech companies are crucial. These relationships are built on trust and the delivery of complex, integrated solutions.
↑AI-Driven Pharma Demand
The company's AI capabilities are increasingly sought after by the pharmaceutical industry. This demand fuels growth and strengthens its competitive position in a rapidly evolving market.
INVESTMENT RISKS
↓Intense Industry Competition
IQVIA faces competition from other CROs and technology providers like Veeva. Differentiation and innovation are critical to maintaining market share.
↓Regulatory Scrutiny & Data Privacy
The handling of sensitive health data exposes IQVIA to significant regulatory oversight and privacy concerns. Changes in regulations could impact operations.
↓Liquidity & Dividend Policy
Weak liquidity and the absence of a dividend may deter some investors. This could affect the stock's attractiveness and valuation.
Base case
IQV base case valuation
A base case discounted cash flow model for IQV estimates an intrinsic value of about $263.57 per share, against a current price of $181.46. The model assumes 10.4% annual free cash flow growth, a 10.0% discount rate, and a 12x exit multiple.
Intrinsic Value
$263.57
Margin of safety
+31.2%
Expected annual return
+7.8%
Base case assumptions: 10.4% annual growth, 10.0% discount rate, 12x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the IQV valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for IQVIA Holdings Inc. respond.
Open DCF Calculator for IQVCompany Overview
IQVIA Holdings Inc. is a premier global provider of sophisticated analytical insights, advanced technology solutions, and comprehensive clinical research services, catering to the life sciences industry across the Americas, Europe, Africa, and Asia-Pacific. The company's operations are structured into three key divisions: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. The Technology & Analytics Solutions segment provides a suite of cloud-native applications, complete with implementation services, and offers real-world data solutions designed to empower life sciences and healthcare providers in generating and disseminating evidence crucial for informed decision-making and improving patient outcomes. This division also delivers strategic and operational consulting, including advanced analytics support and outsourcing of commercial processes. Furthermore, it supplies country-level performance metrics detailing pharmaceutical sales, prescribing trends, medical treatments, and promotional activities across diverse channels like retail, hospital, and mail order, with data granularity extending to regional, postal code, and individual prescriber levels. Focusing on clinical trials, the Research & Development Solutions segment offers project management, clinical monitoring, broader clinical trial support, virtual trial capabilities, and strategic planning and design services. It also manages an extensive network of laboratory services, encompassing central, genomic, bioanalytical, ADME, discovery, vaccine, and biomarker analyses. The Contract Sales & Medical Solutions segment is responsible for engaging healthcare professionals and patients, alongside providing scientific strategy and medical affairs support. IQVIA's diverse clientele includes pharmaceutical, biotechnology, medical device and diagnostic, and consumer health companies. The company maintains a strategic collaboration with HealthCore, Inc. Founded in 1982, the firm was formerly known as Quintiles IMS Holdings, Inc. before rebranding as IQVIA Holdings Inc. in November 2017. Its headquarters are located in Durham, North Carolina.
Financial Metrics — IQV Stock Valuation Data
Revenue/Share (TTM)
$98.76
FCF/Share (TTM)
$15.11
ROIC (TTM)
8.4%
ROE (TTM)
22.5%
P/FCF
11.9x
EV/EBITDA
12.6x
FCF Yield
8.40%
Debt/Equity
2.58x
Based on trailing twelve-month data, IQV shows a free cash flow per share of $15.11 and a ROIC of 8.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 11.9x and FCF yield of 8.40% are important context metrics when evaluating IQV's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of IQV?
IQVIA Holdings Inc. currently generates $15.11 in free cash flow per share. At the current price of $181.46, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is IQV undervalued?
IQV trades at a P/FCF ratio of 11.9x with a free cash flow yield of 8.40%. This relatively low P/FCF may suggest the stock is attractively priced relative to its cash generation. However, whether IQV is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value IQV stock using DCF?
To perform a DCF valuation on IQVIA Holdings Inc.: (1) Start with the trailing free cash flow per share ($15.11) as the base, (2) project future FCF growth over 5-10 years based on Medical - Diagnostics & Research industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting IQV's risk profile — with a debt-to-equity of 2.58x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to IQV?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For IQVIA Holdings Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Medical - Diagnostics & Research trends, then discounting those amounts to today's dollars. IQV's ROIC of 8.4% shows moderate capital returns.
How does WACC affect IQV stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For IQV, with a debt-to-equity ratio of 2.58x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 12.6x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See IQV PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Healthcare valuationsDCF and P/E value IQV with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair 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.