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Elevance Health (NYSE:ELV) PE Ratio

: 20.42 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-02-23), Elevance Health's share price is $514.09. Elevance Health's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $25.17. Therefore, Elevance Health's PE Ratio for today is 20.42.


The historical rank and industry rank for Elevance Health's PE Ratio or its related term are showing as below:

ELV' s PE Ratio Range Over the Past 10 Years
Min: 7.57   Med: 16.41   Max: 23.13
Current: 20.42


During the past 13 years, the highest PE Ratio of Elevance Health was 23.13. The lowest was 7.57. And the median was 16.41.


ELV's PE Ratio is ranked worse than
66.67% of 12 companies
in the Healthcare Plans industry
Industry Median: 18.935 vs ELV: 20.42

Elevance Health's Earnings per Share (Diluted) for the three months ended in Dec. 2023 was $3.63. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $25.17.

As of today (2024-02-23), Elevance Health's share price is $514.09. Elevance Health's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $28.41. Therefore, Elevance Health's PE Ratio without NRI for today is 18.10.

During the past 13 years, Elevance Health's highest PE Ratio without NRI was 23.51. The lowest was 8.19. And the median was 16.44.

Elevance Health's EPS without NRI for the three months ended in Dec. 2023 was $5.62. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $28.41.

During the past 12 months, Elevance Health's average EPS without NRI Growth Rate was 36.50% per year. During the past 3 years, the average EPS without NRI Growth Rate was 22.40% per year. During the past 5 years, the average EPS without NRI Growth Rate was 16.60% per year. During the past 10 years, the average EPS without NRI Growth Rate was 14.80% per year.

During the past 13 years, Elevance Health's highest 3-Year average EPS without NRI Growth Rate was 118.00% per year. The lowest was -9.60% per year. And the median was 16.30% per year.

Elevance Health's EPS (Basic) for the three months ended in Dec. 2023 was $3.67. Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2023 was $25.35.


Elevance Health PE Ratio Historical Data

The historical data trend for Elevance Health's PE Ratio 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
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.35 17.86 18.58 21.13 18.70

Elevance Health Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PE Ratio 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 21.13 17.98 16.68 17.10 18.70

Competitive Comparison

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

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

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



Elevance Health PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Elevance Health's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=514.09/25.170
=20.42

Elevance Health's Share Price of today is $514.09.
Elevance Health's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $25.17.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Elevance Health  (NYSE:ELV) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Elevance Health PE Ratio Related Terms

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Elevance Health (NYSE:ELV) 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