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If you are wondering whether Elevance Health’s current share price still lines up with its fundamentals, you are exactly the kind of investor this breakdown is for.
The stock closed at US$371.06, with a 1% decline over the last 7 days, a 6.1% gain over 30 days, a 4.7% gain year to date, a 5.7% decline over 1 year, a 21.2% decline over 3 years, and a 33.7% gain over 5 years. This gives you a mixed picture of recent and longer term returns.
Recent coverage around Elevance Health has focused on its role as a large US health benefits provider and how it fits into ongoing discussions about healthcare costs and insurer resilience. This kind of attention can influence how investors think about both the risks and stability of the business, which often feeds into how the stock trades.
Simply Wall St gives Elevance Health a valuation score of 5 out of 6. Next, we will walk through what different valuation tools say about that score, before finishing with an approach that can help you see the company’s value in a more complete way.
A Discounted Cash Flow model estimates what a company could be worth today by projecting its future cash flows and then discounting those back to a single present value. It focuses on the cash the business is expected to generate for shareholders rather than just reported earnings.
For Elevance Health, the model starts with last twelve month Free Cash Flow of about $3.58b. Analysts and model estimates project Free Cash Flow rising to about $8.98b by 2030, with a series of yearly projections between 2026 and 2035 that are discounted back using a 2 Stage Free Cash Flow to Equity approach. Simply Wall St uses analyst inputs where available and then extrapolates further years to build a ten year forecast of cash flows in dollars.
When those projected cash flows are discounted to today, the model arrives at an estimated intrinsic value of about $1,011.50 per share, compared with the recent share price of $371.06. That implies Elevance Health is trading at roughly a 63.3% discount to this DCF estimate, which points to a wide gap between the model value and the current market price.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Elevance Health is undervalued by 63.3%. Track this in your watchlist or portfolio, or discover 875 more undervalued stocks based on cash flows.
Story Continues
ELV Discounted Cash Flow as at Jan 2026
For a profitable company like Elevance Health, the P/E ratio is a straightforward way to connect what you pay for each share with the earnings that support that price. Investors usually accept a higher P/E when they expect stronger earnings growth or see the business as lower risk, and a lower P/E when growth is more modest or risks feel higher.
Elevance Health currently trades on a P/E of about 14.9x. That is below the Healthcare industry average of about 23.4x and also below the peer average of about 23.1x. On those simple comparisons alone, the shares look cheaper than many companies in the same space.
Simply Wall St’s Fair Ratio for Elevance Health is 33.1x, which is its proprietary view of what a reasonable P/E could be given factors such as earnings growth, profit margins, industry, market cap and risk profile. This is designed to be more tailored than a straight comparison with peers or industry averages because it adjusts for the company’s own characteristics instead of assuming all Healthcare stocks deserve similar multiples. With the current P/E of 14.9x sitting well below the Fair Ratio of 33.1x, this framework points to Elevance Health looking undervalued on an earnings multiple basis.
Result: UNDERVALUED
NYSE:ELV P/E Ratio as at Jan 2026
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Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, which simply means you attach your story about a company to the numbers you think are reasonable for its future revenue, earnings, profit margins and fair value.
A Narrative links three things in a straight line: your view of Elevance Health’s business, the forecast that flows from that view, and the fair value that forecast implies.
On Simply Wall St’s Community page, used by millions of investors, Narratives are an easy tool that let you compare your fair value for Elevance Health with the current share price. This helps you decide for yourself whether it looks interesting, fully priced, or too expensive for your taste.
Because Narratives update automatically when new information comes in, such as earnings releases or major news, your fair value view does not stay frozen. You can see in real time how the gap between Fair Value and Price changes.
For example, one Elevance Health Narrative might assume a higher fair value based on confidence in long term healthcare demand, while another might set a much lower fair value because the author is more cautious about future policy or cost pressures.
Do you think there’s more to the story for Elevance Health? Head over to our Community to see what others are saying!
NYSE:ELV 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ELV.
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