Is Elevance Health Inc (ELV) overvalued?
On Equity Rank's model estimate, ELV trades close to its fair value (1% below it). Elevance Health Inc (ELV) last closed at $425.62; the multi-method model fair value is $428.61.
| Price | Model fair value | Price vs model |
|---|---|---|
| $425.62 | $428.61 | 1% below |
What the answer rests on
- 4 of 12 valuation methods put ELV's value above its price and 8 put it below, so the methods disagree.
- To justify today's price, ELV's free cash flow would need to grow about 7.6% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -24.1% a year.
- ELV trades at 18.4 times its last year's earnings, against a median of 39.8 for 14 profitable Managed Care companies.
- Over the past year the price sat below the model fair value on 96% of trading days. The gap ranged from 13% below to 1% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind ELV's fair value · What prices assume · Other companies