Idexx Laboratories

Methodology

IDEXX Laboratories' veterinary diagnostics business generates highly predictable earnings from recurring instrument placements and consumables sales to veterinary practices. The company's installed base creates steady demand for test kits and supplies. This calculation works very well given the essential nature of pet diagnostics, with visible recurring revenue from existing instrument placements driving consistent earnings growth.

Methodology

IDEXX typically commands premium PEG ratios reflecting its dominant market position, recurring revenue model, and consistent execution in pet healthcare. The company's diagnostic platform and network effects justify high multiples. Compare to other life science tools companies to assess whether IDEXX's veterinary focus and consumables model warrant its valuation premium over human diagnostics peers.

Methodology

IDEXX does not pay dividends, reinvesting all capital in R&D, geographic expansion, and strategic investments to strengthen veterinary diagnostics leadership. Management prioritizes innovation and market penetration. Total return depends entirely on IDEXX's ability to expand its installed base globally and increase testing per pet as veterinary care becomes more sophisticated.