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Elevance Health (Elevance Health) E10

: $19.30 (As of Dec. 2023)
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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Elevance Health's adjusted earnings per share data for the three months ended in Dec. 2023 was $3.630. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $19.30 for the trailing ten years ended in Dec. 2023.

During the past 12 months, Elevance Health's average E10 Growth Rate was 11.80% per year. During the past 3 years, the average E10 Growth Rate was 16.00% per year. During the past 5 years, the average E10 Growth Rate was 14.10% per year. During the past 10 years, the average E10 Growth Rate was 11.20% 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 E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Elevance Health was 16.00% per year. The lowest was 7.60% per year. And the median was 10.10% per year.

As of today (2024-04-16), Elevance Health's current stock price is $509.82. Elevance Health's E10 for the quarter that ended in Dec. 2023 was $19.30. Elevance Health's Shiller PE Ratio of today is 26.42.

During the past 13 years, the highest Shiller PE Ratio of Elevance Health was 33.04. The lowest was 11.39. And the median was 23.53.


Elevance Health E10 Historical Data

The historical data trend for Elevance Health's E10 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
E10
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.23 12.37 14.88 17.27 19.30

Elevance Health Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
E10 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 17.27 18.02 18.65 19.07 19.30

Competitive Comparison

For the Healthcare Plans subindustry, Elevance Health's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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 Shiller PE Ratio Distribution

For the Healthcare Plans industry and Healthcare sector, Elevance Health's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Elevance Health's Shiller PE Ratio falls into.



Elevance Health E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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 earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=3.63/129.4194*129.4194
=3.630

Current CPI (Dec. 2023) = 129.4194.

Elevance Health Quarterly Data

per share eps CPI Adj_EPS
201403 2.400 99.695 3.116
201406 2.560 100.560 3.295
201409 2.220 100.428 2.861
201412 1.810 99.070 2.364
201503 3.090 99.621 4.014
201506 3.130 100.684 4.023
201509 2.430 100.392 3.133
201512 0.680 99.792 0.882
201603 2.630 100.470 3.388
201606 2.910 101.688 3.704
201609 2.300 101.861 2.922
201612 1.370 101.863 1.741
201703 3.730 102.862 4.693
201706 3.160 103.349 3.957
201709 2.800 104.136 3.480
201712 4.670 104.011 5.811
201803 4.990 105.290 6.134
201806 3.980 106.317 4.845
201809 3.620 106.507 4.399
201812 1.610 105.998 1.966
201903 5.910 107.251 7.132
201906 4.360 108.070 5.221
201909 4.550 108.329 5.436
201912 3.620 108.420 4.321
202003 5.940 108.902 7.059
202006 8.910 108.767 10.602
202009 0.870 109.815 1.025
202012 2.190 109.897 2.579
202103 6.710 111.754 7.771
202106 7.250 114.631 8.185
202109 6.130 115.734 6.855
202112 4.630 117.630 5.094
202203 7.320 121.301 7.810
202206 6.730 125.017 6.967
202209 6.620 125.227 6.842
202212 3.930 125.222 4.062
202303 8.300 127.348 8.435
202306 7.790 128.729 7.832
202309 5.450 129.860 5.432
202312 3.630 129.419 3.630

Add all the adjusted EPS together and divide 10 will get our e10.


Elevance Health  (NYSE:ELV) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Elevance Health's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=509.82/19.3
=26.42

* 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 Shiller P/E Ratio of Elevance Health was 33.04. The lowest was 11.39. And the median was 23.53.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Elevance Health E10 Related Terms

Thank you for viewing the detailed overview of Elevance Health's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Elevance Health (Elevance Health) Business Description

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

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