Medical - Healthcare Plans · NYSE
Current Price
$376.63
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Elevance Health Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Elevance Health Inc. operates as a health benefits company. It supports consumers, families, and communities across the entire care journey connecting to the care, support, and resources to lead healthier lives. It serves approximately 118 million people through a portfolio of medical, digital, pharmacy, behavioral, clinical, and care solutions. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health Inc. in June 2022. Elevance Health Inc. was founded in 1944 and is headquartered in Indianapolis, Indiana.
ROIC (TTM)
7.9%
ROE (TTM)
12.0%
FCF Yield
7.89%
Based on trailing twelve-month data, ELV shows a free cash flow per share of N/A and a ROIC of 7.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 7.89% are important context metrics when evaluating ELV's stock valuation relative to peers.
The intrinsic value of ELV depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether ELV is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $376.63. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Elevance Health Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Medical - Healthcare Plans industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting ELV's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Elevance Health Inc., this means projecting how much free cash flow the Medical - Healthcare Plans will produce over the next 5-10 years, then discounting those amounts to today's dollars. ELV's ROIC of 7.9% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ELV, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
