ELV
Elevance Health Inc.
$425.17
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 1.8% above fair value
You pay
$425.17
Bear
$334.05
Fair
$417.57
Bull
$501.09
Bear
$334.05
-21.4%
$29.47 × 11x P/E
Fair
$417.57
-1.8%
$29.47 × 14x P/E
Bull
$501.09
+17.9%
$29.47 × 17x P/E
Key Value Driver
Normalized P/E multiple (14x base case)
Implied Market Multiple
14.4x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $432.69 from 38 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $417.57 per share.
Warnings
Dividend-based valuation: $1072.76 (above our primary estimate by 161%). Large gaps may signal the dividend doesn't reflect full earning power.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples