Elevance Health Inc. (ELV) Stock Valuation — PE Analysis
Medical - Healthcare Plans · NYSE
Current Price
$400.54
PE Ratio (TTM)
17.8x
Intrinsic Value
$369.57
-8.4% margin of safety
COMPETITIVE MOAT
↑Extensive Provider Network
Elevance Health boasts a vast network of healthcare providers. This scale creates significant switching costs for members and employers seeking to maintain access to their preferred doctors and hospitals.
↑Government Contract Expertise
Deep experience in managing government health programs like Medicare and Medicaid provides a stable, recurring revenue stream. Navigating these complex regulatory environments creates a barrier to entry for competitors.
↑Data Analytics and Scale
Leveraging vast amounts of member data allows for sophisticated risk assessment and cost management. This scale advantage enhances efficiency and pricing power in a competitive market.
INVESTMENT RISKS
↓Healthcare Cost Inflation
Rising medical costs can outpace premium increases, squeezing profit margins. Managing these escalating expenses is a constant challenge for health insurers.
↓Cybersecurity Threats
As a holder of sensitive member data, Elevance Health is a prime target for cyberattacks. Data breaches can lead to significant financial and reputational damage.
↓Changes in Healthcare Utilization
Shifts in how and when members access healthcare services, influenced by economic conditions or public health trends, can unpredictably affect claims costs.
Base case
ELV base case PE valuation
At a current price of $400.54, the base case PE valuation puts ELV fair value near $369.57 per share. That figure assumes 2.2% yearly earnings growth, a target PE multiple of 17.58x, and a 10% discount rate.
Intrinsic Value
$369.57
Margin of safety
-8.4%
Expected annual return
-1.6%
Base case assumptions: 2.2% annual earnings growth, 17.58x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ELV PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Elevance Health Inc. respond.
Open PE Calculator for ELVCompany Overview
Operating as a major health benefits organization, Elevance Health Inc. commits to guiding consumers, families, and communities across their entire health and wellness path. It facilitates access to vital care, assistance, and tools designed to enable healthier living for approximately 118 million individuals. The company's comprehensive offerings span medical, digital, pharmaceutical, behavioral health, clinical, and other care solutions. Founded in 1944 and based in Indianapolis, Indiana, this entity adopted its current name, Elevance Health Inc., in June 2022, having previously operated as Anthem, Inc.
Financial Metrics — ELV PE Stock Valuation Data
PE Ratio (TTM)
17.8x
PEG Ratio
n/m
Earnings Yield
5.69%
ROE (TTM)
11.2%
Revenue/Share (TTM)
$922.96
Dividend Yield
1.71%
Debt/Equity
0.69x
Frequently Asked Questions
What is the PE ratio of ELV?
The trailing twelve-month PE ratio of ELV reflects how much investors pay per dollar of Elevance Health Inc.'s earnings. This metric is most useful when compared to Medical - Healthcare Plans peers and the company's own historical range.
Is ELV overvalued based on PE ratio?
ELV's PE of 17.8x combined with a PEG ratio of -3.96 provides a growth-adjusted perspective. ELV has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Healthcare Plans, a DCF analysis may be more appropriate.
How do I value ELV stock using PE ratio?
To value Elevance Health Inc. using PE: (1) Compare the current PE (17.8x) against the Medical - Healthcare Plans median to assess relative pricing, (2) check the PEG ratio (-3.96) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of ELV?
ELV's PEG ratio is -3.96, calculated by dividing the PE ratio (17.8x) by the expected earnings growth rate. Because ELV has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for ELV stock valuation?
PE ratio gives a quick relative read — how ELV is priced versus Medical - Healthcare Plans peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See ELV DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value ELV with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.