ELV

Elevance Health, Inc.Healthcare / Healthcare PlansINTACT

Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates in four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to individual, employer group risk-based and fee-based, BlueCard, Medicare, Medicaid, and FEP members; health products; a broad array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, and supplemental health insurance benefits. The company also operates in the pharmacy services business; and markets and offers pharmacy services, including home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services, as well as infusion services and injectable therapies through ambulatory infusion centers. In addition, it provides healthcare related services and capabilities, including specialty care enablement and utilization management support for specialized clinical domains; behavioral health and comprehensive care management services; palliative care services and management; virtual care; and payment integrity, subrogation, clinical data exchange through its HealthOS platform, research and data, reporting and clinical analytics, information technology, and business process support services, as well as manages home health, post-acute institutional management, and durable medical equipment costs; and supports plans in managing home and community-based services. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brands. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is based in Indianapolis, Indiana.

Share Price
$418.25
52W: $274.84 - $436.24
DCF Fair Value
$407.10
-2.7% Premium
P/E (TTM)
18.5x
ROIC
8%
Operating Margin
4.6%
FCF Yield
4.7%
Debt / Equity
0.69x
Piotroski Score
6/9
Altman Z-Score
6.55
Market Cap
$90.7B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($407.10)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$407.10
MOS Buy Target (-25%)
$305.33
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$418.25
DCF Fair Value
$406.45
-2.9% Premium
$4,306M
$100M$4,306M (Reported)$50,000M
5.3%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
-$6,500M (Net Cash)
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$35.4B
PV of Terminal Value
$46.3B
Implied Enterprise Value
$81.7B
Implied Equity Value
$88.2B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$4,534$4,775$5,028$5,294$5,575$5,825$6,088$6,362$6,648$6,947
Present Value (PV)$4,160$4,019$3,882$3,750$3,623$3,474$3,330$3,193$3,061$2,934

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-28.9% Premium
$324.57

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $22.62BVPS: $206.99
Revised Graham Formula-22.2% Premium
$342.13

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings4.5% Yield
$18.85 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $4.1BYield: 4.5%

Reverse DCF: Market Growth Expectation

MODEST BARRIER
6.3% CAGR (Next 10 Yrs)

At the current price of $418.25, the market is assuming the business will compound Free Cash Flow at 6.3% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
✓ Low market hurdle: Easy for a wide-moat compounder to beat.
Autonomous Thesis Underwriting

Surveil ELV with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Elevance Health, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 4.6% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Elevance Health, Inc. (ELV) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Elevance Health, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Elevance Health, Inc. has an estimated DCF intrinsic fair value of $407.10 per share compared to its current market price of $418.25. This represents an estimated 2.7% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $324.57.

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