Elevance Health Inc. (ELV) Stock

Elevance Health Inc. trades at a P/E ratio of 14.84, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 11.10 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.69 suggests the stock may be undervalued relative to its growth rate.

With a beta of 0.62, Elevance Health Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 2.03 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Elevance Health Inc. achieves a profit margin of 3.23%, meaning it retains $3.23 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 6.42% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 14.20% and ROA at 4.93%, the company achieves moderate returns on invested capital.

Elevance Health Inc.'s revenue grew by 14.80% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 0.20% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against HOSPITAL & MEDICAL SERVICE PLANS industry averages for proper context.

Elevance Health Inc. offers a dividend yield of 1.79%, paying $6.60 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 6/10/2025.

The dividend sustainability can be assessed through the payout ratio - Elevance Health Inc. pays $6.60 per share in dividends against earnings of $25.71 per share, resulting in a payout ratio of 25.67%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for 6/25/2025.

Elevance Health Inc. has a market capitalization of $86.19B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 225.94M shares outstanding, the company's ownership is relatively concentrated. As a participant in the HOSPITAL & MEDICAL SERVICE PLANS industry, it competes with other firms in this sector.

Elevance Health Inc.'s book value per share is $188.37, while the current stock price is $289.13, resulting in a price-to-book (P/B) ratio of 1.53. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

22 analysts cover ELV with 82% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $500.75 implies 73.2% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:5 Strong Buy, 13 Buy, 4 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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