Elevance Health Inc. (ELV) Intrinsic Value & DCF Valuation
Medical - Healthcare Plans · NYSE
Current Price
$414.41
Intrinsic Value
$411.24
-0.8% margin of safety
What Is Elevance Health Inc.'s Intrinsic Value?
As of 2026-10-28, the base-case DCF model estimates the intrinsic value of Elevance Health Inc. (ELV) at $411.24 per share, compared with a market price of $414.41, a margin of safety of -0.8%. The base case assumes 2.4% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $320.39 to $516.94. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Elevance Health Inc. (ELV) Undervalued?
At $414.41, ELV trades about 0.8% above the base-case intrinsic value estimate, a modest premium. By this model the price sits within a normal band, though faster growth than assumed would change the picture.
COMPETITIVE MOAT
↑Scale and Network Effects
Elevance Health's massive member base creates significant network effects. This scale allows for better negotiation power with providers and a wider selection of plans for consumers.
↑Integrated Care Ecosystem
The company's focus on integrating health plans with care delivery services, like its own pharmacy benefit manager (PBM) and care coordination, creates switching costs for members and providers.
↑Data Analytics Advantage
Vast amounts of member data enable sophisticated analytics for risk management, personalized care, and operational efficiency, which is difficult for smaller competitors to replicate.
INVESTMENT RISKS
↓Premium Decline Impact
A decline in premiums, as suggested by recent outlooks, could directly pressure revenue and profitability if not offset by cost efficiencies or membership growth.
↓Execution of Integrated Strategy
The success of Elevance's integrated care strategy relies heavily on effective execution and seamless integration of diverse services, which carries inherent operational risks.
↓Provider Network Management
Maintaining a competitive and cost-effective provider network is crucial. Strained relationships or rising provider costs could negatively impact member satisfaction and financial performance.
Base case
ELV base case valuation
Intrinsic Value
$411.24
Margin of safety
-0.8%
Expected annual return
-0.2%
Base case assumptions: 2.4% annual growth, 10.0% discount rate, 13.8x exit multiple, 5 year projection. Data as of 2026-10-28.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ELV valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Elevance Health Inc. respond.
Open DCF 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 Stock Valuation Data
Revenue/Share (TTM)
$927.53
FCF/Share (TTM)
$29.94
ROIC (TTM)
7.5%
ROE (TTM)
11.6%
P/FCF
13.8x
EV/EBITDA
12.4x
FCF Yield
7.25%
Debt/Equity
0.69x
On a trailing twelve-month basis, ELV generates free cash flow per share of $29.94 alongside a ROIC of 7.5%, both central inputs for a DCF valuation. Its P/FCF ratio of 13.8x and FCF yield of 7.25% then frame how ELV is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of ELV?
Elevance Health Inc. currently generates $29.94 in free cash flow per share. At the current price of $414.41, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is ELV undervalued?
ELV trades at a P/FCF ratio of 13.8x with a free cash flow yield of 7.25%. A low P/FCF means investors are paying less per dollar of free cash flow; whether that is cheap depends on the company's growth, cyclicality, and capital intensity. However, whether ELV is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value ELV stock using DCF?
To perform a DCF valuation on Elevance Health Inc.: (1) Start with the trailing free cash flow per share ($29.94) 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 — with a debt-to-equity of 0.69x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to ELV?
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 company will produce over the next 5-10 years, shaped by Medical - Healthcare Plans trends, then discounting those amounts to today's dollars. ELV's ROIC of 7.5% means the company's return on invested capital sits below the level that typically clears its cost of capital.
How does WACC affect ELV stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ELV, with a debt-to-equity ratio of 0.69x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 12.4x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See ELV PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Healthcare valuationsDCF and P/E value ELV with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.