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).
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- Income Statement
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Net Profit Margin since 2005
- Current Ratio since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
- Aggregate Accruals
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Current Valuation Ratios
Elevance Health Inc., current price multiples
| Elevance Health Inc. | Abbott Laboratories | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | Health Care Equipment & Services | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | ||||||||||
| No. shares of common stock outstanding | ||||||||||
| Growth rate (g) | ||||||||||
| Earnings per share (EPS) | ||||||||||
| Next year expected EPS | ||||||||||
| Operating profit per share | ||||||||||
| Sales per share | ||||||||||
| Book value per share (BVPS) | ||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | ||||||||||
| Price to next year expected earnings | ||||||||||
| Price-earnings-growth (PEG) | ||||||||||
| Price to operating profit (P/OP) | ||||||||||
| Price to sales (P/S) | ||||||||||
| Price to book value (P/BV) | ||||||||||
Based on: 10-K (reporting date: 2025-12-31).
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
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2025-12-31), 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).
An examination of the valuation ratios reveals consistent declines across all metrics observed between 2022 and 2025. These decreases suggest a changing market perception of the company’s value relative to its earnings, operating profit, sales, and book value.
- Price to Earnings (P/E)
- The Price to Earnings ratio experienced a modest increase from 18.13 in 2021 to 19.20 in 2022, followed by a further increase to 19.80 in 2023. However, a notable downward trend commenced in 2024, decreasing to 14.85, and continued into 2025, reaching 13.21. This indicates a decreasing willingness of investors to pay for each dollar of earnings.
- Price to Operating Profit (P/OP)
- Similar to the P/E ratio, the Price to Operating Profit ratio exhibited a slight decrease from 15.70 in 2021 to 15.05 in 2022, then increased to 15.57 in 2023. A decline then began in 2024, falling to 12.19, and continued to 11.39 in 2025. This mirrors the trend observed in the P/E ratio, suggesting a consistent shift in valuation relative to operational profitability.
- Price to Sales (P/S)
- The Price to Sales ratio demonstrated a consistent downward trajectory throughout the observed period. Starting at 0.81 in 2021, it decreased to 0.74 in 2022 and 0.70 in 2023. The rate of decline accelerated in 2024 to 0.51, and further decreased to 0.38 in 2025. This suggests a significant reduction in the market value assigned to each dollar of revenue.
- Price to Book Value (P/BV)
- The Price to Book Value ratio showed relative stability between 2021 and 2023, fluctuating between 3.02 and 3.19. However, a substantial decrease was observed in 2024, falling to 2.15, and continued in 2025, reaching 1.70. This indicates a diminishing premium investors are willing to pay for the company’s net asset value.
Collectively, the observed trends across these valuation ratios suggest a decreasing market valuation of the company. The accelerating declines in the latter years of the period warrant further investigation to determine the underlying drivers of this shift.
Price to Earnings (P/E)
Elevance Health Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Shareholders’ net income (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Abbott Laboratories | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | ||||||
| P/E Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Shareholders’ net income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Elevance Health Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio for the period demonstrates a fluctuating pattern. Initially, the ratio exhibited an increasing trend, followed by a notable decline in later years.
- Overall Trend
- From 2021 to 2023, the P/E ratio increased steadily, moving from 18.13 to 19.80. This suggests a growing investor willingness to pay more for each dollar of earnings during this timeframe. However, a significant shift occurred between 2023 and 2025, with the P/E ratio decreasing from 19.80 to 13.21. This indicates a diminishing investor confidence or a reassessment of the company’s earnings potential.
- P/E Ratio – Year-over-Year Changes
- The largest year-over-year increase in the P/E ratio occurred between 2021 and 2022, with a change of 1.07. The most substantial decrease was observed between 2023 and 2024, falling by 5.00. The decline continued between 2024 and 2025, decreasing by 1.64.
- Relationship to Share Price and EPS
- The share price increased from US$458.58 in 2021 to US$509.38 in 2023, coinciding with the initial rise in the P/E ratio. However, the share price then experienced a substantial decrease, falling to US$338.98 by 2025. Earnings per share (EPS) remained relatively stable between 2021 and 2023, with a slight increase each year. EPS decreased slightly in 2025. The combined effect of the declining share price and relatively stable EPS is the primary driver of the observed decrease in the P/E ratio.
The decreasing P/E ratio in the latter part of the period suggests that the market’s valuation of the company’s earnings has diminished. This could be due to various factors, including changes in market conditions, investor sentiment, or company-specific concerns.
Price to Operating Profit (P/OP)
Elevance Health Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Abbott Laboratories | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | ||||||
| P/OP Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Elevance Health Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio for the observed period demonstrates a generally decreasing trend, although with some fluctuation. Initially, the ratio exhibited a slight decline, followed by a period of relative stability, and then a more pronounced decrease towards the end of the period.
- Overall Trend
- The P/OP ratio began at 15.70 in 2021 and decreased to 11.39 in 2025. This represents an overall reduction of approximately 27.6% over the five-year period. The most significant decline occurred between 2023 and 2025.
- Initial Phase (2021-2022)
- From 2021 to 2022, the P/OP ratio experienced a modest decrease, moving from 15.70 to 15.05. This suggests a slight adjustment in market valuation relative to operating profitability during this timeframe.
- Stabilization (2022-2023)
- The ratio remained relatively stable between 2022 and 2023, increasing slightly from 15.05 to 15.57. This indicates a period where market valuation and operating profit were more closely aligned.
- Decline (2023-2025)
- A notable downward trend is observed from 2023 to 2025. The P/OP ratio decreased from 15.57 in 2023 to 12.19 in 2024, and further to 11.39 in 2025. This suggests a decreasing willingness of investors to pay a premium for each dollar of operating profit, potentially reflecting changing market conditions or investor sentiment.
- Relationship to Operating Profit per Share
- While the share price decreased more substantially than the operating profit per share over the period, the decline in the P/OP ratio indicates that the share price reduction outpaced the decrease in operating profitability. Operating profit per share remained relatively consistent between 2021 and 2023, before experiencing a decline in the later years.
In summary, the P/OP ratio indicates a diminishing valuation relative to operating profit over the analyzed period, with the most substantial decrease occurring in the final two years. This trend warrants further investigation to understand the underlying drivers of this valuation shift.
Price to Sales (P/S)
Elevance Health Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating revenue (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Abbott Laboratories | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | ||||||
| P/S Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Operating revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Elevance Health Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price to sales ratio exhibited a consistent decline over the five-year period. Simultaneously, sales per share demonstrated a steady increase. These movements suggest a changing relationship between the company’s market valuation and its revenue generation at the per-share level.
- Price to Sales Ratio
- The price to sales ratio decreased from 0.81 in 2021 to 0.38 in 2025. This represents a more than 50% reduction in the multiple over the observed timeframe. The most significant decrease occurred between 2023 and 2024, falling from 0.70 to 0.51, and continued into 2025. This suggests that the market is valuing each dollar of sales at a progressively lower rate.
- Sales per Share
- Sales per share increased consistently, moving from 567.51 in 2021 to 895.24 in 2025. This indicates a growth in revenue generated for each outstanding share. The rate of increase appeared to accelerate between 2024 and 2025, with a larger absolute increase compared to prior years.
- Combined Trend
- The diverging trends of the price to sales ratio and sales per share imply that despite increasing revenue per share, the market’s willingness to pay for each dollar of that revenue has diminished. This could be attributable to various factors, including changes in investor sentiment, broader market conditions, or company-specific concerns not reflected in sales figures alone. The decreasing P/S ratio, coupled with rising sales per share, could also indicate increasing market efficiency in pricing the company’s stock.
In summary, the observed trends suggest a decoupling of share price from revenue generation, with the market assigning a decreasing premium to each dollar of sales. Further investigation would be required to determine the underlying causes of this shift.
Price to Book Value (P/BV)
Elevance Health Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Abbott Laboratories | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | ||||||
| P/BV Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Elevance Health Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price to book value (P/BV) ratio for the period examined demonstrates a fluctuating pattern. Initially, the ratio exhibited an increasing trend, followed by a significant decline in later years.
- Overall Trend
- From December 31, 2021, to December 31, 2023, the P/BV ratio increased from 3.07 to 3.19, then slightly decreased to 3.02. However, a marked downward trend commenced in December 31, 2024, with the ratio falling to 2.15, and continuing to decline to 1.70 by December 31, 2025.
- Share Price and Book Value Per Share
- The share price increased from US$458.58 in 2021 to US$509.38 in 2023, contributing to the initial rise in the P/BV ratio. However, the share price then decreased substantially to US$390.50 in 2024 and further to US$338.98 in 2025. Simultaneously, the book value per share (BVPS) consistently increased throughout the period, moving from US$149.44 in 2021 to US$198.83 in 2025. This consistent growth in BVPS, coupled with the declining share price, is the primary driver of the decreasing P/BV ratio.
- Ratio Interpretation
- The P/BV ratio’s decline suggests that the market is valuing the company at a decreasing multiple of its net asset value. A ratio of 1.70 in 2025 indicates that investors are willing to pay US$1.70 for every US$1.00 of the company’s net assets. This represents a significant shift from the higher valuations observed in earlier years. The decreasing ratio could indicate increased investor skepticism, concerns about future profitability, or a reassessment of the company’s intrinsic value relative to its market price.