# Elevance Health (ELV.US)

Canonical: https://gigainvestors.com/s/ELV

Analysis as of: 2026-10-16T07:28:14.909Z. Financial observations: FY1998–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $428.43 per share; close as of 2026-10-15.

Estimated value: low $446.59 per share, central $600.48 per share, high $703.38 per share. Buy at or below the central value $600.48 per share. Valuation as of 2026-10-16T07:28:14.909Z; scenarios are not confidence intervals.

Expected annual return: 12.7% at the stated quote. About 12.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.06×

- FY2018: 0.06×

- FY2019: 0.06×

- FY2020: 0.06×

- FY2021: 0.06×

- FY2022: 0.05×

- FY2023: 0.05×

- FY2024: 0.05×

- FY2025: 0.04×

- LTM to Jun 2026: 0.04×

### moat: pass

- ROIC, median of available years: 20.2%

- ROIC, second-lowest year: 17.9%

- Typical minus recent gross margin: -2.1 pp

- Typical gross margin (annual median): 25.8%

- Recent gross margin (lower of latest and 3-year median): 27.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.8%

- ROIC including acquisitions, ten-year median: 9.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 20.5%

- FY2018: 18.5%

- FY2019: 19.7%

- FY2020: 20.5%

- FY2021: 21.6%

- FY2022: 21.6%

- FY2023: 19.9%

- FY2024: 17.9%

- FY2025: 17.4%

- LTM to Jun 2026: 59.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.06×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $31B

- Net income, five-year total: $30B

- Return on incremental invested capital: 16.4%

- Working capital / revenue, annual change: 4.3 pp

- Working capital / revenue, change between three-year averages: 27.3 pp

- Working capital / revenue, final three-year average: -10.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.04×

- FY2022: 1.09×

- FY2023: 1.07×

- FY2024: 1.02×

- FY2025: 1.08×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 18.5% vs 17.9%

- Per-share earnings: 9.38 to 25.22 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.9%

- Ordinary dilution, 5-year annual growth: -2.5%

- Market cap gain: $39B

- Cumulative retained earnings: $19B

- Diluted shares, 10-year annual growth: -1.9%

- Diluted shares, 5-year annual growth: -2.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.2%

- Per-share value change: $15.84

- Per-share value, starting three-year median: $9.38

- Per-share value, ending three-year median: $25.22

- Buybacks concentrated in cheaper years (correlation): 0.55

- Average buyback yield: 2.5%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $15B

- Cumulative net income, 10 years: $49B

- ROIC, first three-year median: 18.5%

- ROIC, last three-year median: 17.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $9.21

- FY2017: $14.35

- FY2018: $14.19

- FY2019: $18.47

- FY2020: $17.98

- FY2021: $24.73

- FY2022: $24.28

- FY2023: $25.22

- FY2024: $25.68

- FY2025: $25.21

### accounting: pass

- Sloan accruals: 1.1%

- Receivables to sales index (DSRI): 1.04×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.76×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.90×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.1%

- FY2017: -0.5%

- FY2018: -0.1%

- FY2019: -1.6%

- FY2020: -6.9%

- FY2021: -2.3%

- FY2022: -2.4%

- FY2023: -1.9%

- FY2024: 0.1%

- FY2025: 1.1%

## Holders

- [Seth Klarman](https://gigainvestors.com/BAUPOST): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Glenn Greenberg](https://gigainvestors.com/CCM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Ruane](https://gigainvestors.com/RC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Harry Burn](https://gigainvestors.com/SSHFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [William Browne](https://gigainvestors.com/TB): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Arnold Van Den Berg](https://gigainvestors.com/VAN): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [C.T. Fitzpatrick](https://gigainvestors.com/VVP): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Donald Yacktman](https://gigainvestors.com/YAM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 23% since Aug 2024 · "Elevance Beat Earnings Estimates, but the Stock Falls on Medicaid Spending Worries" (finance.yahoo.com, Jul 2026) · sales +1%

Story as of 2026-10-16T09:58:41.371Z; price observation 2026-10-15.

Price needs cash profits to grow 0.8% a year for ten years

- 2025-07-17: Elevance Health Tumbles After Slashing 2025 Outlook on Medicaid Weakness ([finance.yahoo.com](https://finance.yahoo.com/news/elevance-health-tumbles-slashing-2025-204411541.html))

- 2025-09-04: Elevance falls on softer margin estimate, reaffirmed 2025 guidance ([seekingalpha.com](https://seekingalpha.com/news/4492363-elevance-falls-on-softer-margin-estimate-reaffirmed-2025-guidance?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-10-21: Elevance flags higher costs in Medicaid business in 2026, shares retreat ([finance.yahoo.com](https://finance.yahoo.com/news/elevance-flags-higher-costs-medicaid-154318095.html))

- 2026-02-08: A Look At Elevance Health (ELV) Valuation After Earnings Growth And Softer 2026 Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/look-elevance-health-elv-valuation-130350374.html))

- 2026-04-22: Elevance Health Reports First Quarter 2026 Results; Raises Full-Year Guidance ([finance.yahoo.com](https://finance.yahoo.com/sectors/healthcare/articles/elevance-health-reports-first-quarter-100000733.html))

- 2026-07-15: Elevance Health beats second-quarter forecasts but shares slide on margin pressure (ELV) ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/elevance-health-beats-second-quarter-122915940.html))

### Sales · FY2025–2026

sales +1%; source https://www.sec.gov/Archives/edgar/data/1156039/000115603926000013/elv-20251231.htm; observed 2026-02-06.

- FY2017: $90B 

- FY2018: $92B 

- FY2019: $104B 

- FY2020: $122B 

- FY2021: $139B 

- FY2022: $157B 

- FY2023: $171B 

- FY2024: $177B 

- FY2025: $199B 

- FY2026: $201B 

### Gross margin · FY2026

gross margin 39%; source https://www.sec.gov/Archives/edgar/data/1156039/000115603926000013/elv-20251231.htm; observed 2026-02-06.

- FY2017: 19.8% 

- FY2018: 21.9% 

- FY2019: 21.5% 

- FY2020: 27.8% 

- FY2021: 26.0% 

- FY2022: 25.5% 

- FY2023: 27.4% 

- FY2024: 27.9% 

- FY2025: 25.6% 

- FY2026: 39.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in healthcare plans; annual sales are USD 199.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1156039/000115603926000013/elv-20251231.htm (filed 2026-02-06); FY2025: revenue 199125000000; grossProfit 50902000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 25.6% to 27.9% during 2023–25; it earns 20.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2023: grossProfit / revenue = 27.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2024: grossProfit / revenue = 27.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1156039/000115603926000013/elv-20251231.htm (filed 2026-02-06); FY2025: grossProfit / revenue = 25.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); 10-year return on capital observations [[2017,0.20483326800713197],[2018,0.18525398663278492],[2019,0.19666065179920733],[2020,0.20472367584754253],[2021,0.2160606695812433],[2022,0.21629669813781233],[2023,0.19904550182057165],[2024,0.17928368371649347],[2025,0.1742227984876977],[2026,0.5915914149317568]]; median 0.20188458883405708. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 26% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1156039/000115603926000013/elv-20251231.htm (filed 2026-02-06); Gross margin observations: [[2021,0.259623915348495],[2022,0.25513586002107347],[2023,0.27436675615734796]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 2.6 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2016: growth capex 0; upkeep 583600000; owner earnings 2798200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2017: growth capex 0; upkeep 790200000; owner earnings 3943600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2018: growth capex 53257785.609519005; upkeep 1154742214.390481; owner earnings 3727257785.609519. Growth capex / owner earnings = 0.014288731467713535.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2019: growth capex 0; upkeep 1077000000; owner earnings 4863000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2020: growth capex 0; upkeep 1021000000; owner earnings 4705000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2021: growth capex 0; upkeep 1087000000; owner earnings 6319000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2022: growth capex 0; upkeep 1152000000; owner earnings 6417000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2023: growth capex 0; upkeep 1296000000; owner earnings 6436000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); FY2024: growth capex 0; upkeep 1256000000; owner earnings 6117000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1156039/000115603926000013/elv-20251231.htm (filed 2026-02-06); FY2025: growth capex 0; upkeep 1116000000; owner earnings 6092000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); Dividend observations: [[2016,684000000],[2017,704900000],[2018,776000000],[2019,818000000],[2020,954000000],[2021,1104000000],[2022,1229000000],[2023,1395000000],[2024,1508000000],[2025,1529000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1156039/000115603926000013/elv-20251231.htm (filed 2026-02-06); FY2025: cash repurchases 2605000000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ELV.US SharesStats.PercentInsiders = 0.189 percentage points; cache date 2026-10-16.

### What could break it

"A change in our healthcare product mix may impact our profitability." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1156039/000115603926000013/elv-20251231.htm (filed 2026-02-06); A change in our healthcare product mix may impact our profitability.

### What the price says

The price assumes cash profits grow 0.8% yearly over ten years; actual growth was 10%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-06); Ten-year compound average after fade. Initial solved rate -0.0019847195409167795. Price 428.43; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 10.498351044338586 → FY2025 27.123775601068566. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $121.86 per share

- 2016-11: $142.53 per share

- 2016-12: $143.77 per share

- 2017-01: $154.14 per share

- 2017-02: $164.82 per share

- 2017-03: $165.38 per share

- 2017-04: $177.89 per share

- 2017-05: $182.35 per share

- 2017-06: $188.13 per share

- 2017-07: $186.21 per share

- 2017-08: $196.04 per share

- 2017-09: $189.88 per share

- 2017-10: $209.21 per share

- 2017-11: $234.96 per share

- 2017-12: $225.01 per share

- 2018-01: $247.85 per share

- 2018-02: $235.38 per share

- 2018-03: $219.70 per share

- 2018-04: $235.99 per share

- 2018-05: $221.42 per share

- 2018-06: $238.03 per share

- 2018-07: $253.00 per share

- 2018-08: $264.73 per share

- 2018-09: $274.05 per share

- 2018-10: $275.57 per share

- 2018-11: $290.07 per share

- 2018-12: $262.63 per share

- 2019-01: $303.00 per share

- 2019-02: $300.73 per share

- 2019-03: $286.98 per share

- 2019-04: $263.03 per share

- 2019-05: $277.98 per share

- 2019-06: $282.21 per share

- 2019-07: $294.61 per share

- 2019-08: $261.52 per share

- 2019-09: $240.10 per share

- 2019-10: $269.08 per share

- 2019-11: $288.66 per share

- 2019-12: $302.03 per share

- 2020-01: $265.28 per share

- 2020-02: $257.09 per share

- 2020-03: $227.04 per share

- 2020-04: $280.73 per share

- 2020-05: $294.11 per share

- 2020-06: $262.98 per share

- 2020-07: $273.80 per share

- 2020-08: $281.52 per share

- 2020-09: $268.59 per share

- 2020-10: $272.80 per share

- 2020-11: $311.52 per share

- 2020-12: $321.09 per share

- 2021-01: $296.98 per share

- 2021-02: $303.19 per share

- 2021-03: $358.95 per share

- 2021-04: $379.39 per share

- 2021-05: $398.22 per share

- 2021-06: $381.80 per share

- 2021-07: $384.01 per share

- 2021-08: $375.13 per share

- 2021-09: $372.80 per share

- 2021-10: $435.13 per share

- 2021-11: $406.23 per share

- 2021-12: $463.54 per share

- 2022-01: $440.99 per share

- 2022-02: $451.85 per share

- 2022-03: $491.22 per share

- 2022-04: $501.93 per share

- 2022-05: $509.61 per share

- 2022-06: $482.58 per share

- 2022-07: $477.10 per share

- 2022-08: $485.11 per share

- 2022-09: $454.24 per share

- 2022-10: $546.77 per share

- 2022-11: $532.92 per share

- 2022-12: $512.97 per share

- 2023-01: $499.99 per share

- 2023-02: $469.67 per share

- 2023-03: $459.81 per share

- 2023-04: $468.65 per share

- 2023-05: $447.82 per share

- 2023-06: $444.29 per share

- 2023-07: $471.63 per share

- 2023-08: $442.01 per share

- 2023-09: $435.42 per share

- 2023-10: $450.09 per share

- 2023-11: $479.49 per share

- 2023-12: $471.56 per share

- 2024-01: $493.44 per share

- 2024-02: $501.25 per share

- 2024-03: $518.54 per share

- 2024-04: $528.58 per share

- 2024-05: $538.48 per share

- 2024-06: $541.86 per share

- 2024-07: $532.03 per share

- 2024-08: $556.89 per share

- 2024-09: $520.00 per share

- 2024-10: $405.76 per share

- 2024-11: $406.96 per share

- 2024-12: $368.90 per share

- 2025-01: $395.70 per share

- 2025-02: $396.88 per share

- 2025-03: $434.96 per share

- 2025-04: $420.58 per share

- 2025-05: $383.84 per share

- 2025-06: $388.96 per share

- 2025-07: $283.08 per share

- 2025-08: $318.65 per share

- 2025-09: $323.12 per share

- 2025-10: $317.20 per share

- 2025-11: $338.26 per share

- 2025-12: $350.55 per share

- 2026-01: $345.74 per share

- 2026-02: $320.00 per share

- 2026-03: $292.75 per share

- 2026-04: $376.42 per share

- 2026-05: $393.19 per share

- 2026-06: $386.73 per share

- 2026-07: $375.84 per share

- 2026-08: $392.54 per share

- 2026-09: $388.82 per share

- 2026-10: $425.27 per share

## Annual estimated value (USD per share)

- FY2016: low $130.95 per share, central $149.00 per share, high $173.04 per share

- FY2017: low $138.90 per share, central $158.06 per share, high $183.55 per share

- FY2018: low $144.03 per share, central $163.88 per share, high $190.32 per share

- FY2019: low $177.09 per share, central $201.50 per share, high $234.01 per share

- FY2020: low $211.97 per share, central $241.20 per share, high $280.10 per share

- FY2021: low $268.92 per share, central $306.00 per share, high $355.36 per share

- FY2022: low $354.06 per share, central $498.18 per share, high $584.80 per share

- FY2023: low $323.27 per share, central $367.84 per share, high $427.17 per share

- FY2024: low $380.24 per share, central $517.58 per share, high $606.63 per share

- FY2025: low $426.95 per share, central $574.08 per share, high $672.46 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:33:56.415Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1156039/000115603926000013/elv-20251231.htm); period 2025-12-31, filed 2026-02-06.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.