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Elevance Health (Elevance Health) Cyclically Adjusted FCF per Share

: $23.05 (As of Dec. 2023)
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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

Elevance Health's adjusted free cash flow per share for the three months ended in Dec. 2023 was $-13.994. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is $23.05 for the trailing ten years ended in Dec. 2023.

During the past 12 months, Elevance Health's average Cyclically Adjusted FCF Growth Rate was 12.20% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 17.50% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 21.70% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 14.90% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Elevance Health was 24.90% per year. The lowest was 7.00% per year. And the median was 8.60% per year.

As of today (2024-04-16), Elevance Health's current stock price is $507.21. Elevance Health's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $23.05. Elevance Health's Cyclically Adjusted Price-to-FCF of today is 22.00.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Elevance Health was 34.97. The lowest was 12.25. And the median was 22.22.


Elevance Health Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Elevance Health's Cyclically Adjusted FCF per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Elevance Health Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.54 14.21 17.28 20.54 23.05

Elevance Health Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted FCF per Share Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.54 23.10 23.90 24.55 23.05

Competitive Comparison

For the Healthcare Plans subindustry, Elevance Health's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Elevance Health Cyclically Adjusted Price-to-FCF Distribution

For the Healthcare Plans industry and Healthcare sector, Elevance Health's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Elevance Health's Cyclically Adjusted Price-to-FCF falls into.



Elevance Health Cyclically Adjusted FCF per Share Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

What is Cyclically Adjusted FCF per Share? How do we calculate Cyclically Adjusted FCF per Share?

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Elevance Health's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=-13.994/129.4194*129.4194
=-13.994

Current CPI (Dec. 2023) = 129.4194.

Elevance Health Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 4.278 99.695 5.554
201406 3.271 100.560 4.210
201409 1.641 100.428 2.115
201412 0.004 99.070 0.005
201503 5.570 99.621 7.236
201506 3.763 100.684 4.837
201509 0.612 100.392 0.789
201512 3.044 99.792 3.948
201603 4.644 100.470 5.982
201606 1.998 101.688 2.543
201609 2.982 101.861 3.789
201612 0.403 101.863 0.512
201703 9.469 102.862 11.914
201706 0.825 103.349 1.033
201709 8.188 104.136 10.176
201712 -5.992 104.011 -7.456
201803 7.599 105.290 9.341
201806 0.858 106.317 1.044
201809 0.950 106.507 1.154
201812 0.624 105.998 0.762
201903 5.322 107.251 6.422
201906 4.659 108.070 5.579
201909 5.369 108.329 6.414
201912 3.784 108.420 4.517
202003 9.013 108.902 10.711
202006 20.662 108.767 24.585
202009 -5.728 109.815 -6.751
202012 14.067 109.897 16.566
202103 9.271 111.754 10.736
202106 5.651 114.631 6.380
202109 9.130 115.734 10.210
202112 5.423 117.630 5.967
202203 9.358 121.301 9.984
202206 8.862 125.017 9.174
202209 19.071 125.227 19.710
202212 -7.526 125.222 -7.778
202303 25.732 127.348 26.151
202306 6.728 128.729 6.764
202309 9.700 129.860 9.667
202312 -13.994 129.419 -13.994

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


Elevance Health  (NYSE:ELV) Cyclically Adjusted FCF per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Elevance Health's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=507.21/23.05
=22.00

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Elevance Health was 34.97. The lowest was 12.25. And the median was 22.22.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Elevance Health Cyclically Adjusted FCF per Share Related Terms

Thank you for viewing the detailed overview of Elevance Health's Cyclically Adjusted FCF per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Elevance Health (Elevance Health) Business Description

Industry
Traded in Other Exchanges
Address
220 Virginia Avenue, Indianapolis, IN, USA, 46204
Elevance Health remains one of the leading health insurers in the U.S., providing medical benefits to 48 million medical members as of June 2023. The company offers employer, individual, and government-sponsored coverage plans. Elevance differs from its peers in its unique position as the largest single provider of Blue Cross Blue Shield branded coverage, operating as the licensee for the Blue Cross Blue Shield Association in 14 states. Through acquisitions, such as the Amerigroup deal in 2012 and MMM in 2021, Elevance's reach expands beyond those states through government-sponsored programs such as Medicaid and Medicare Advantage plans, too.
Executives
Blair Williams Todt officer: EVP and Chief Legal Officer 8735 HENDERSON ROAD, TAMPA FL 33625
Ronald W Penczek officer: SVP, Chief Accounting Officer 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Mark Kaye officer: EVP & CFO Designate 7 WORLD TRADE CENTER, 250 GREENWICH ST, NEW YORK NY 10007
Dixon Robert L Jr director 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Gloria M Mccarthy officer: EVP, Office of the CEO WELLPOINT, INC, 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Kendrick Charles Morgan Jr officer: EVP & President, Commercial 220 VIRGINIA AVE, INDIANAPOLIS IN 46204
Deanna D Strable-soethout director C/O PRINCIPAL FINANCIAL GROUP, 711 HIGH ST., DES MOINES IA 50392
Ramiro G Peru director WELLPOINT, INC, 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46260
Peter D Haytaian officer: EVP & Pres., Govt. Bus. Div. 220 VIRGINIA AVE, INDIANAPOLIS IN 46204
Susan D. Devore director C/O PREMIER, INC., 13034 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Ryan M. Schneider director 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
John E Gallina officer: SVP & Chief Accounting Officer 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Julie A Hill director WELLPOINT, INC, 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Thomas C Zielinski officer: EVP & General Counsel
Jeffrey D. Alter officer: EVP, IngenioRx & Anthem Health 4330 LA JOLLA VILLAGE DRIVE, SUITE 200, SAN DIEGO CA 92122