Key Takeaways:
- IDEXX Laboratories continues to benefit from growing demand for companion animal diagnostics, supported by high margins and strong returns on capital.
- IDEXX stock could reasonably reach $879 per share by December 2028, based on our valuation assumptions.
- This implies a total return of 36.7% from today’s price of $643, with an annualized return of 11.3% over the next 2.9 years.
IDEXX Laboratories (IDXX) is a leading provider of veterinary diagnostics and water testing solutions, and it has compounded value for shareholders with a 38.3% total return over the past year.
The company benefits from recurring consumables and services revenue, and it continues to post robust growth in revenue, earnings, and returns on invested capital.
The health care equipment and supplies leader serves veterinarians, livestock producers, and water quality professionals with analyzers, rapid tests, and cloud-based software that support clinical decisions and practice efficiency.
IDEXX generated a last three-year revenue CAGR of 8.5% and EPS CAGR of 17.7%, and it currently delivers LTM EBIT margins of 31.6% and ROIC of 55.4%.
Here’s why IDEXX stock could provide solid returns through 2028 and 2030 as it scales high-margin diagnostics, software, and services while maintaining strong capital efficiency and returns on equity.
What the Model Says for IDEXX Stock
We analyzed the upside potential for IDEXX stock using valuation assumptions based on its consistent mid-to-high single-digit revenue growth, structurally high margins, and a premium but stable P/E multiple.
Based on estimates of 9.0% annual revenue growth, 33.0% operating margins, and a normalized P/E multiple of 44.1x, the model projects IDEXX stock could rise from $643 to $879 per share.
That would be a 36.7% total return, or an 11.3% annualized return over the next 2.9 years.
Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for IDEXX stock:
1. Revenue Growth: 9.0%
IDEXX generated last three-year revenue CAGR of 8.5% and forward two-year revenue CAGR expectations of 8.7%, showing consistent mid-to-high single-digit top-line expansion.
Growth has been supported by strong demand for companion animal diagnostics, expansion of in-clinic analyzers, and increased utilization of reference laboratory services.
The company’s forward two-year EPS CAGR of 11.9% reflects operating leverage on revenue growth, and it aligns with the high returns on capital and scalable diagnostics and software platform.
Based on analysts’ consensus estimates, we used a 9.0% forecast, reflecting IDEXX’s ability to sustain steady revenue growth across its global installed base of instruments, recurring consumables and services.
2. Operating Margins: 33.0%
IDEXX currently delivers LTM EBIT margins of 31.6%, supported by a mix of high-margin consumables, reference lab services, and software.
Over the past several years, margins have expanded as the company leveraged its fixed cost base and shifted toward higher-value diagnostic and digital offerings.
Based on analysts’ consensus estimates, we use 33.0% operating margins, reflecting IDEXX’s ability to modestly expand profitability as scale increases, while it continues to invest in R&D, commercial capabilities, and digital platforms to support long-term growth.
3. Exit P/E Multiple: 44.1x
IDEXX stock currently trades near an NTM P/E of 44.4x, which is above many healthcare peers but broadly in line with its own historical premium valuation.
The market has granted this multiple because IDEXX combines durable recurring revenue, high margins, and exceptional returns on equity of 66.2% and ROIC of 55.4%.
Based on analysts’ consensus estimates, we maintain a 44.1x exit multiple given IDEXX’s durable competitive advantages from its installed analyzer base, long customer relationships with veterinarians, and high switching costs in diagnostic workflows, balanced against already-elevated valuation compared with broader markets.
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What Happens If Things Go Better or Worse?
Different scenarios for IDXX stock through 2030 show varied outcomes based on revenue growth, margin expansion, and valuation multiple stability (these are estimates, not guaranteed returns):
- Low Case: Revenue growth slows toward 7.8%, operating margins reach 24.3%, and the exit valuation compresses slightly → 5.7% annual returns
- Mid Case: Revenue grows at 8.7%, operating margins expand to 25.9%, and the multiple stays near current levels → 10.6% annual returns
- High Case: Revenue growth accelerates toward 9.6%, operating margins reach 27.2%, and the exit multiple remains robust → 15.1% annual returns
The upcoming full-year 2025 results on February 6, 2026, and Q1 2026 results on May 8, 2026, may influence which path the stock follows because they will update the market on growth and margin trends.
See what analysts think about IDXX stock right now (Free with TIKR) >>>
How Much Upside Does IDEXX Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
