Elevance Health Inc. (ELV) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+138.8%

$983.40

vs $411.90 price

Levered DCF

$809.73

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.03

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	13.92×	14.29×	18.58×	20.89×	18.36×	17.61×	16.06×	18.08×
P/B	1.77×	2.08×	2.8×	3.4×	3.13×	2.43×	2.43×	2.34×
P/S	0.39×	0.49×	0.64×	0.79×	0.82×	0.66×	0.74×	0.73×
EV / EBITDA	10.51×	10.52×	12.4×	13.98×	13.27×	11.82×	11.88×	11.8×
Gross margin	25.6%	27.9%	27.4%	25.5%	26.0%	27.8%	21.5%	21.9%
Operating margin	4.1%	5.0%	5.1%	5.4%	6.5%	6.3%	6.5%	6.3%
Net margin	2.8%	3.4%	3.5%	3.8%	4.4%	3.8%	4.6%	4.1%
Current ratio	1.24×	1.1×	0.97×	1.03×	0.94×	1.14×	1.11×	1.13×
Debt / equity	0.76×	0.79×	0.68×	0.71×	0.69×	0.66×	0.67×	0.67×
Interest coverage	5.79×	7.5×	8.49×	9.93×	11.21×	9.84×	9.03×	7.75×
Dividend yield	2.0%	1.8%	1.3%	1.0%	1.0%	1.2%	1.1%	1.2%
Payout ratio	27.0%	25.2%	23.3%	20.9%	18.1%	20.9%	17.0%	20.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.9%	14.5%	15.2%	16.3%	16.9%	13.8%	15.2%	13.1%
Return on invested capital	6.6%	6.7%	7.4%	7.6%	8.2%	7.3%	7.8%	6.6%
Return on assets	4.7%	5.1%	5.5%	5.7%	6.3%	5.2%	6.1%	5.2%
Free cash flow yield	4.1%	5.3%	6.2%	5.9%	6.4%	12.0%	6.5%	3.9%
Earnings yield	7.3%	7.0%	5.4%	4.8%	5.4%	5.7%	6.2%	5.6%
Enterprise value	$101.5B	$110.3B	$130B	$141.5B	$133B	$96.6B	$93.4B	$82.1B
Net debt / EBITDA	2.46×	2.33×	1.92×	1.82×	2×	1.97×	2.07×	2.2×
Cash conversion cycle (days)	-14	-18	-21	-21	-23	-23	-13	-11