Stock Analysis on Net

Elevance Health Inc. (NYSE:ELV)

Enterprise Value to EBITDA (EV/EBITDA)

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Elevance Health Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Shareholders’ net income 5,987 6,025 6,104 4,572 4,807
Add: Net income attributable to noncontrolling interest 4 (6) (9)
Add: Income tax expense 1,724 1,750 1,830 1,666 1,178
Earnings before tax (EBT) 7,715 7,769 7,925 6,238 5,985
Add: Interest expenses 1,030 851 798 784 746
Earnings before interest and tax (EBIT) 8,745 8,620 8,723 7,022 6,731
Add: Depreciation and amortization 1,745 1,675 1,302 1,154 1,133
Earnings before interest, tax, depreciation and amortization (EBITDA) 10,490 10,295 10,025 8,176 7,864

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Elevance Health Inc. EBITDA increased from 2021 to 2022 and from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

Elevance Health Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 109,498
Earnings before interest, tax, depreciation and amortization (EBITDA) 10,490
Valuation Ratio
EV/EBITDA 10.44
Benchmarks
EV/EBITDA, Competitors1
Abbott Laboratories 19.43
Cigna Group 12.91
CVS Health Corp. 8.28
Danaher Corp. 26.32
Humana Inc. 6.89
Intuitive Surgical Inc. 56.91
Medtronic PLC 15.21
UnitedHealth Group Inc. 13.51
EV/EBITDA, Sector
Health Care Equipment & Services 14.54
EV/EBITDA, Industry
Health Care 19.11

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Elevance Health Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 107,367 105,582 100,728 61,875 71,186
Earnings before interest, tax, depreciation and amortization (EBITDA)2 10,490 10,295 10,025 8,176 7,864
Valuation Ratio
EV/EBITDA3 10.24 10.26 10.05 7.57 9.05
Benchmarks
EV/EBITDA, Competitors4
Abbott Laboratories 19.49 15.85 17.42 25.99 21.70
Cigna Group 12.11 8.88 9.06 6.31 8.42
CVS Health Corp. 8.03 12.42 10.41 8.56 9.43
Danaher Corp. 26.41 18.42 21.05 26.68 25.23
Humana Inc. 7.33 11.59 11.22 6.91 9.30
Intuitive Surgical Inc. 53.82 41.52 44.54 59.12 37.53
Medtronic PLC 15.28 14.99 24.41 17.92 16.01
UnitedHealth Group Inc. 13.60 15.11 17.39 13.39 13.82
EV/EBITDA, Sector
Health Care Equipment & Services 14.40 14.33 15.77 13.69 13.61
EV/EBITDA, Industry
Health Care 18.75 13.67 13.83 16.25 14.26

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 107,367 ÷ 10,490 = 10.24

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Elevance Health Inc. EV/EBITDA ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.