Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Elevance Health Inc., current price multiples
| Elevance Health Inc. | Abbott Laboratories | CVS Health Corp. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | Health Care Equipment & Services | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | $350.25 | ||||||||||
| No. shares of common stock outstanding | 225,934,600 | ||||||||||
| Growth rate (g) | 12.09% | ||||||||||
| Earnings per share (EPS) | $26.47 | ||||||||||
| Next year expected EPS | $29.67 | ||||||||||
| Operating profit per share | $32.23 | ||||||||||
| Sales per share | $775.46 | ||||||||||
| Book value per share (BVPS) | $182.86 | ||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | 13.23 | 17.41 | 18.26 | 83.42 | 24.26 | 19.37 | 22.13 | 33.83 | |||
| Price to next year expected earnings | 11.81 | 15.84 | 17.48 | 73.81 | 23.89 | 16.84 | 20.28 | 31.23 | |||
| Price-earnings-growth (PEG) | 1.09 | 1.75 | 4.09 | 6.41 | 15.50 | 1.29 | 2.42 | 4.06 | |||
| Price to operating profit (P/OP) | 10.87 | 34.19 | 9.89 | 82.49 | 18.99 | 8.64 | 15.75 | 23.63 | |||
| Price to sales (P/S) | 0.45 | 5.56 | 0.23 | 23.20 | 3.37 | 0.71 | 0.96 | 2.37 | |||
| Price to book value (P/BV) | 1.92 | 4.90 | 1.12 | 11.79 | 2.36 | 3.01 | 3.03 | 4.99 | |||
Based on: 10-K (reporting date: 2024-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Elevance Health Inc., historical price multiples
Based on: 10-K (reporting date: 2024-12-31), 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).
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibited an increasing trend from 15.87 in 2020 to a peak of 19.8 in 2023, indicating rising market valuation relative to earnings during this period. However, there was a notable decline to 14.85 in 2024, suggesting a reduction in market optimism or an increase in earnings relative to price in the most recent year.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio followed a similar trajectory to the P/E ratio, increasing from 12.1 in 2020 to 15.7 in 2021, then stabilizing around 15 in 2022 and 15.57 in 2023. In 2024, this ratio decreased to 12.19, reflecting a recent adjustment in investor valuation relative to operating profits, potentially indicating improved operating profitability or reduced price multiples.
- Price to Sales (P/S) Ratio
- The P/S ratio increased from 0.6 in 2020 to 0.81 in 2021, followed by a gradual decline to 0.74 in 2022 and further down to 0.7 in 2023. By 2024, it had dropped significantly to 0.51, indicating that the market price relative to sales has contracted over the period after an initial increase, potentially due to growth in sales outpacing price appreciation or reduced investor confidence.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio showed a rising pattern from 2.19 in 2020 to a peak of 3.19 in 2022, remaining slightly above 3 in 2023. In 2024, it declined considerably to 2.15. This suggests increased market valuation relative to book value for three years, followed by a reversion closer to the 2020 level, possibly reflecting changes in asset valuations or investor sentiment.
Price to Earnings (P/E)
Elevance Health Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 227,351,871 | 232,668,735 | 237,457,776 | 241,304,369 | 244,905,689 | |
| Selected Financial Data (US$) | ||||||
| Shareholders’ net income (in millions) | 5,980) | 5,987) | 6,025) | 6,104) | 4,572) | |
| Earnings per share (EPS)2 | 26.30 | 25.73 | 25.37 | 25.30 | 18.67 | |
| Share price1, 3 | 390.50 | 509.38 | 487.13 | 458.58 | 296.33 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 14.85 | 19.80 | 19.20 | 18.13 | 15.87 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Abbott Laboratories | 17.46 | 34.57 | 26.76 | 29.13 | 48.49 | |
| CVS Health Corp. | 17.28 | 11.47 | 27.53 | 17.39 | 12.88 | |
| Intuitive Surgical Inc. | 87.82 | 74.11 | 64.99 | 59.94 | 87.47 | |
| Medtronic PLC | 27.97 | 30.94 | 23.38 | 46.56 | 26.30 | |
| UnitedHealth Group Inc. | 29.75 | 20.53 | 22.46 | 26.03 | 20.54 | |
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | 25.63 | 23.36 | 24.57 | 26.88 | 24.48 | |
| P/E Ratio, Industry | ||||||
| Health Care | 37.14 | 29.43 | 21.38 | 21.35 | 30.75 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Shareholders’ net income ÷ No. shares of common stock outstanding
= 5,980,000,000 ÷ 227,351,871 = 26.30
3 Closing price as at the filing date of Elevance Health Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 390.50 ÷ 26.30 = 14.85
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a significant upward trend from 2020 to 2023, rising from $296.33 to a peak of $509.38. However, in 2024, the share price declined notably to $390.50. Overall, there was substantial growth over the four-year period followed by a correction in the final year.
- Earnings Per Share (EPS)
- Earnings per share steadily increased throughout the entire period, moving from $18.67 in 2020 to $26.30 by the end of 2024. The growth in EPS was consistent but moderate, reflecting a gradual improvement in profitability.
- Price to Earnings (P/E) Ratio
- The P/E ratio increased from 15.87 in 2020 to reach its highest level of 19.8 in 2023, indicating growing investor expectations relative to earnings. In 2024, the P/E ratio dropped sharply to 14.85, the lowest in the period, implying a reduction in market valuation multiples despite increasing earnings.
- Summary
- The company experienced robust share price appreciation supported by steadily rising earnings per share over the analyzed period. However, the decline in share price during 2024, coupled with the falling P/E ratio, suggests a reassessment by the market of the company’s valuation relative to its earnings. This shift may indicate increased market caution or changing investor sentiment despite continued earnings growth.
Price to Operating Profit (P/OP)
Elevance Health Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 227,351,871 | 232,668,735 | 237,457,776 | 241,304,369 | 244,905,689 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 7,282) | 7,614) | 7,685) | 7,048) | 5,999) | |
| Operating profit per share2 | 32.03 | 32.72 | 32.36 | 29.21 | 24.50 | |
| Share price1, 3 | 390.50 | 509.38 | 487.13 | 458.58 | 296.33 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 12.19 | 15.57 | 15.05 | 15.70 | 12.10 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Abbott Laboratories | 34.28 | 30.54 | 22.18 | 24.45 | 40.69 | |
| CVS Health Corp. | 9.36 | 6.96 | 14.75 | 10.43 | 6.65 | |
| Intuitive Surgical Inc. | 86.83 | 75.42 | 54.49 | 56.11 | 88.37 | |
| Medtronic PLC | 19.98 | 21.20 | 20.48 | 37.44 | 26.29 | |
| UnitedHealth Group Inc. | 13.27 | 14.20 | 15.89 | 18.77 | 14.12 | |
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | 18.23 | 16.62 | 17.98 | 19.92 | 17.16 | |
| P/OP Ratio, Industry | ||||||
| Health Care | 25.94 | 25.66 | 16.51 | 17.67 | 22.32 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 7,282,000,000 ÷ 227,351,871 = 32.03
3 Closing price as at the filing date of Elevance Health Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 390.50 ÷ 32.03 = 12.19
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a significant upward trend from 2020 through 2023, increasing from $296.33 to $509.38. However, in 2024, the share price declined notably to $390.50, representing a reversal in the previous positive momentum.
- Operating Profit per Share
- Operating profit per share showed consistent growth over the period from 2020 to 2023, rising steadily from $24.50 to $32.72. In 2024, there was a slight decrease to $32.03, although the level remained relatively close to the peak of the prior year.
- Price-to-Operating Profit Ratio (P/OP)
- The P/OP ratio increased from 12.1 in 2020 to a peak of 15.7 in 2021, then fluctuated mildly, settling at 15.57 in 2023. By 2024, the ratio decreased significantly to 12.19, indicating a revaluation of the share price relative to operating profit per share.
- Summary Insights
- Overall, the data indicates a period of strong growth in both share price and operating profit per share until 2023, followed by a correction in 2024. The decrease in the P/OP ratio in 2024 suggests that the market valuation adjusted downward more markedly than the operating profit per share, potentially reflecting changing investor sentiment or external market factors affecting the valuation.
Price to Sales (P/S)
Elevance Health Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 227,351,871 | 232,668,735 | 237,457,776 | 241,304,369 | 244,905,689 | |
| Selected Financial Data (US$) | ||||||
| Operating revenue (in millions) | 175,204) | 170,209) | 155,660) | 136,943) | 120,808) | |
| Sales per share2 | 770.63 | 731.55 | 655.53 | 567.51 | 493.28 | |
| Share price1, 3 | 390.50 | 509.38 | 487.13 | 458.58 | 296.33 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 0.51 | 0.70 | 0.74 | 0.81 | 0.60 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Abbott Laboratories | 5.58 | 4.93 | 4.25 | 4.78 | 6.30 | |
| CVS Health Corp. | 0.22 | 0.27 | 0.36 | 0.47 | 0.35 | |
| Intuitive Surgical Inc. | 24.42 | 18.71 | 13.81 | 17.89 | 21.29 | |
| Medtronic PLC | 3.18 | 3.72 | 3.72 | 5.57 | 4.36 | |
| UnitedHealth Group Inc. | 1.08 | 1.25 | 1.40 | 1.58 | 1.24 | |
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.11 | 1.15 | 1.22 | 1.48 | 1.29 | |
| P/S Ratio, Industry | ||||||
| Health Care | 2.61 | 2.72 | 2.48 | 2.65 | 2.59 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Operating revenue ÷ No. shares of common stock outstanding
= 175,204,000,000 ÷ 227,351,871 = 770.63
3 Closing price as at the filing date of Elevance Health Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 390.50 ÷ 770.63 = 0.51
5 Click competitor name to see calculations.
The financial data over the five-year period reveals several noteworthy trends concerning the share price, sales per share, and price-to-sales (P/S) ratio.
- Share Price
- The share price showed a marked increase from US$296.33 at the end of 2020 to US$509.38 by the end of 2023, indicating a significant growth trajectory over these years. However, there was a decline in 2024 to US$390.5, which represents a notable reversal after the prior upward trend.
- Sales per Share
- Sales per share consistently increased throughout the entire five-year period, rising from US$493.28 in 2020 to US$770.63 in 2024. This steady growth suggests ongoing improvements in revenue generation on a per-share basis, reflecting positively on the underlying business performance.
- Price-to-Sales (P/S) Ratio
- The P/S ratio experienced fluctuations, beginning at 0.6 in 2020 and increasing to 0.81 in 2021. Following this peak, the ratio gradually declined to 0.74 in 2022, 0.7 in 2023, and notably dropped to 0.51 in 2024. This downtrend in the P/S ratio, despite rising sales per share, signals a relatively lower market valuation of sales in the most recent year compared to prior years.
Overall, while the sales per share maintained a positive growth trajectory, the share price's decline in the latest period and the decreasing P/S ratio may warrant further analysis regarding market perception, investor sentiment, or external factors influencing valuation.
Price to Book Value (P/BV)
Elevance Health Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 227,351,871 | 232,668,735 | 237,457,776 | 241,304,369 | 244,905,689 | |
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in millions) | 41,315) | 39,306) | 36,307) | 36,060) | 33,199) | |
| Book value per share (BVPS)2 | 181.72 | 168.94 | 152.90 | 149.44 | 135.56 | |
| Share price1, 3 | 390.50 | 509.38 | 487.13 | 458.58 | 296.33 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 2.15 | 3.02 | 3.19 | 3.07 | 2.19 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Abbott Laboratories | 4.91 | 5.12 | 5.06 | 5.75 | 6.65 | |
| CVS Health Corp. | 1.05 | 1.25 | 1.61 | 1.83 | 1.33 | |
| Intuitive Surgical Inc. | 12.41 | 10.01 | 7.78 | 8.59 | 9.53 | |
| Medtronic PLC | 2.05 | 2.26 | 2.24 | 3.26 | 2.48 | |
| UnitedHealth Group Inc. | 4.63 | 5.18 | 5.81 | 6.27 | 4.83 | |
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | 3.51 | 3.64 | 3.75 | 4.16 | 3.51 | |
| P/BV Ratio, Industry | ||||||
| Health Care | 5.48 | 5.44 | 4.90 | 5.07 | 4.90 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 41,315,000,000 ÷ 227,351,871 = 181.72
3 Closing price as at the filing date of Elevance Health Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 390.50 ÷ 181.72 = 2.15
5 Click competitor name to see calculations.
- Share Price
- The share price experienced a substantial increase from $296.33 at the end of 2020 to a peak of $509.38 by the end of 2023, indicating strong market confidence and growth over this period. However, in 2024, the share price declined notably to $390.50, representing a significant reversal from the previous upward trend.
- Book Value Per Share (BVPS)
- The book value per share has shown consistent growth across all reported periods, rising from $135.56 at the end of 2020 to $181.72 by the end of 2024. This steady increase reflects ongoing improvements in the company's net asset base on a per-share basis, suggesting that the company’s intrinsic value has strengthened over time.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio increased notably from 2.19 in 2020 to a peak of 3.19 in 2022, indicating that the market was valuing the company's shares at a higher premium relative to their book value during this period. This elevated valuation persisted into 2023 with a slight decrease to 3.02. In 2024, the ratio declined sharply to 2.15, approximately returning to the 2020 level. This change suggests a reduction in market valuation relative to book value, possibly due to the decline in share price or increased market caution.