IQVIA Holdings Inc. IQV
Verdict: Hold. Fair value $232 against a price of $235 on 6 Jan 2026, 1% below the price.
In plain words
The case for: Wide competitive moat provides durability. Market leadership enables pricing power. Industry tailwinds with growing market.
The case against: In 2023, Net Income grew 24.8% year-over-year ($1.09B to $1.36B) while Revenue grew only 4.0%....
Main risks
- Extremely high leverage: Debt/Equity of 2.33 and a Debt/EBITDA ratio over 5.0x indicate significant financial risk and constrain flexibility.
- Low Return on Invested Capital (ROIC): The current estimated ROIC of 6.5% is low for a company of this type and likely trails its WACC, suggesting inefficiency in its overall capital base.
- Inconsistent Free Cash Flow: FCF has shown significant volatility over the past four years (from $2.3B down to $1.5B and back up), making future cash generation less predictable.
- Overbought (RSI: 80)
- Market volatility
- Execution risk