• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Elevance Health (ELV): Revisiting Valuation After a Gradual Share Price Recovery

    Simply Wall St·12/25/2025 16:14:34
    Listen to the news

    Recent performance and why Elevance Health is on investors’ radar

    Elevance Health (ELV) has been quietly grinding higher, with shares up about 4% over the month and roughly 8% in the past 3 months, even as the stock remains down year to date.

    See our latest analysis for Elevance Health.

    The latest move to around $343.30 continues a steady recovery, with the 3 month share price return of 8.4% contrasting with a weaker year to date share price return and a muted 1 year total shareholder return. This suggests momentum is rebuilding after a tougher stretch.

    If Elevance has you rethinking your healthcare exposure, this could be a good moment to explore other potential compounders across healthcare stocks.

    With shares still below analyst targets but long term returns mixed, is Elevance trading at a meaningful discount to its intrinsic value, or has the market already priced in its next leg of earnings driven growth?

    Most Popular Narrative Narrative: 11.3% Undervalued

    With Elevance Health last closing at $343.30 versus a narrative fair value near $387, the current share price sits below what long term forecasts imply.

    Strategic investments in digital consumer engagement and Carelon's diversified health services (e.g., pharmacy, care management, behavioral health) are accelerating revenue growth and providing higher-margin, recurring income streams, which should drive both topline and earnings diversity as industry healthcare spending and complexity continue to rise.

    Read the complete narrative.

    Curious how steady growth, shifting margins, and a surprisingly modest earnings multiple can still support a higher value than today’s price suggests? The full narrative breaks down the revenue runway, margin reset, and share count assumptions that underpin this outlook. It also shows how they map into a future earnings profile that may not match the broader healthcare sector but still justifies a richer price than the market is currently assigning.

    Result: Fair Value of $387.16 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, persistent Medicaid cost pressures and slower than expected rate recovery could delay the margin normalization that this narrative relies on.

    Find out about the key risks to this Elevance Health narrative.

    Build Your Own Elevance Health Narrative

    If this view does not fully align with your own, or you would rather dig into the numbers yourself, you can build a personalized narrative in just a few minutes: Do it your way.

    A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Elevance Health.

    Looking for more investment ideas?

    Do not stop at one opportunity; use the Simply Wall St Screener to uncover focused, high conviction stock ideas that other investors could notice only after you.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.