Elevance Health Inc. (NYSE:ELV)

The financial ratios over the periods exhibit discernible trends reflecting changes in valuation and market perception relative to earnings, operating profit, sales, and book value.

Price to Earnings (P/E) Ratio

The P/E ratio data begins in March 2021, showing an initial increase from 15.87 to a peak of 22.1 in September 2021. Following the peak, the ratio generally declined with some fluctuations, stabilizing around a range of 17 to 20 through 2023 and early 2024. Thereafter, a declining trend is apparent, with the P/E ratio decreasing to 12.71 by June 2025. This indicates that market valuation relative to earnings became more conservative in the later periods, possibly due to earnings growth outpacing share price increases or changes in investor sentiment.

Price to Operating Profit (P/OP) Ratio

Starting from March 2021, the P/OP ratio reveals a pattern similar to the P/E ratio. It rose from 12.1 to a peak near 19.93 in September 2021, then gradually decreased with some volatility. During 2023, values oscillated around the mid-teens before declining significantly toward the end of the series, reaching the lowest point of 9.63 in June 2025. This suggests that operating profit valuation experienced compression in the later intervals, which might reflect improved operating profit margins or a change in market risk perception.

Price to Sales (P/S) Ratio

The P/S ratio showed a fairly steady increase from 0.6 in March 2021 to 0.89 in June 2022, indicating rising share prices relative to sales. After this peak, the ratio trended downward, with a notable drop below 0.5 near mid-2025. This decreasing trend indicates the market’s lowering valuation relative to sales, possibly due to slowing sales growth or shifting investor expectations about revenue quality or growth sustainability.

Price to Book Value (P/BV) Ratio

The P/BV ratio has data from March 2020, showing an initial moderate range around 2.1, followed by a pronounced increase from 2.78 in March 2021 to a peak of 3.55 in March 2022. Thereafter, the ratio declined gradually through 2023 and 2024, settling near 2.15 by June 2025. The notable peak in early 2022 indicates periods of high market valuation relative to book value, which then normalized over time. The subsequent decline may reflect balance sheet changes or adjustments in market assessments of asset value sustainability.

Overall, the valuation metrics suggest that the company experienced heightened market optimism around late 2021 and early 2022, as seen by peaks across various ratios. Following this period, a steady decline in relative valuation is present, possibly signaling more cautious market sentiment or improved fundamental performance dampening premium multiples. The consistent decrease in price-related ratios toward mid-2025 suggests either a correction in valuation or an improvement in earnings, operating profits, and book values relative to share prices.

The financial data reveals several noteworthy trends in key financial metrics over the examined periods.

Share Price (US$)

The share price exhibited a general upward trend from March 2020 through March 2022, with values increasing from approximately 280 US$ to a peak of nearly 530 US$. Following this peak, the share price experienced a period of volatility and decline. By December 2024, the share price had notably decreased to around 390 US$, and continued downward to a low near 300 US$ by June 2025. This pattern indicates an initial phase of strong market confidence and growth, followed by a correction or market pressures reducing the share value in subsequent quarters.

Earnings Per Share (EPS) (US$)

Starting from March 2021, reported EPS values show relatively stable profitability with fluctuations within a moderate range. The EPS rose from 18.67 US$ in March 2021 to a high near 28.85 US$ by September 2024. However, the EPS dropped to 23.8 US$ by June 2025, indicating a slight reduction in reported earnings. Despite the volatility in share price, EPS demonstrated resilience and gradual growth until the later periods where a decline is visible.

Price-to-Earnings (P/E) Ratio (ratio)

The P/E ratio displayed variability consistent with the movements in share price and EPS. Initially, it increased from 15.87 in March 2021 to a higher range around 22 by September 2021, signaling rising investor expectations or elevated share price relative to earnings. Subsequently, the ratio oscillated mostly between 12 and 20, suggesting shifts in market valuation sentiment. The declining P/E ratio towards mid-2025 corresponds with the falling share price and relatively stable EPS, pointing toward a possible market revaluation or reduced optimism.

Overall, the data portrays a scenario where earnings remained fairly stable with moderate growth for an extended period, while share prices experienced more pronounced fluctuations. The P/E ratio movements align with these trends, reflecting changing market perceptions of the company's value relative to its earnings. The decline in share price and P/E ratio in the latest periods may warrant further investigation into underlying causes affecting market confidence.

The share price exhibited a general upward trend from March 2020 through the first quarter of 2022, increasing from $280.61 to a peak of $529.84. Following this peak, there was notable volatility and a downward trajectory towards June 2025, when the share price declined to $302.45. This represents a significant retracement from the peak levels observed in early 2022.

Operating profit per share data becomes available starting in March 2021. From that point onward, the figure shows an overall upward trend with periodic fluctuations. It began at $24.50 in March 2021 and reached a high of $34.99 in September 2024 before slightly decreasing to $31.41 by June 2025. This suggests consistent growth in operating profitability per share over the observed period, albeit with small variations near the end of the timeline.

The price-to-operating profit (P/OP) ratio reveals meaningful insights about valuation relative to operating profitability. Initially, the ratio was at a low of 12.1 in March 2021 but increased substantially to nearly 20 by September 2021, indicating that the share price was rising faster than operating profit per share during this period. Subsequently, the ratio generally declined until March 2023, moving into a lower range between 9.63 and approximately 15.79. The most recent data shows a reduction to 9.63 in June 2025, suggesting that the share price is currently valued at a relatively lower multiple of operating profit compared to previous years.

Share Price Trend

Strong appreciation until early 2022, followed by increased volatility and a downward adjustment up to mid-2025.

Operating Profit Per Share Trend

Consistently rising from initial figures in 2021, with a peak in late 2024, then a slight decline by mid-2025.

P/OP Ratio Behavior

Initial rise indicating price growth outpacing operating profits, followed by a gradual decline to lower valuation multiples by mid-2025.

Insights

The share price's peak and subsequent decline contrast with the overall growth in operating profit per share, leading to a more conservative valuation multiple. This could suggest market adjustment to more sustainable profit levels or shifts in market sentiment regarding future earnings potential.

The data reveals several key trends in the share price, sales per share, and the price-to-sales (P/S) ratio over the observed periods.

Share Price

The share price shows a general upward trajectory from the first quarter of 2020 through the first quarter of 2022. Starting at approximately $280 in March 2020, it rose steadily, peaking at around $530 in March 2022. After this peak, the share price experienced volatility with a downward trend, declining to approximately $302 by June 2025. This pattern indicates a phase of growth followed by a period of correction or reduced market valuation.

Sales Per Share

Sales per share data is available beginning in March 2021. From that point onward, sales per share exhibit a consistent and steady increase every quarter. The values rose from about $493 in the first quarter of 2021 to over $834 by June 2025. This trend suggests ongoing operational growth and potentially increasing revenue generation capacity or improved efficiency on a per-share basis.

Price-to-Sales (P/S) Ratio

The P/S ratio shows variability over time. Initially, around March 2021, the ratio was 0.60 and rose to a high of 0.89 by mid-2022, reflecting increasing market valuation relative to sales. However, following this peak, the ratio declined steadily to 0.36 by June 2025. The diminishing P/S ratio alongside rising sales per share but falling share price indicates that the market valuation per unit of sales has compressed, suggesting either a reassessment of growth prospects, changing investor sentiment, or broader market conditions affecting valuation multiples.

In summary, the financial data points to a period of rising sales and share price up until early 2022, after which the share price declined despite ongoing growth in sales per share. Correspondingly, the P/S ratio declined, reflecting a contraction in valuation multiples over time relative to sales growth. This combination of trends may warrant further investigation into factors influencing investor confidence and market expectations.

The analysis of financial data over multiple quarters reveals evolving trends in share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio.

Share Price

The share price experienced a general upward trajectory from early 2020 through early 2022, rising from approximately $280 to a peak above $529. This indicates a strong positive market sentiment and potential company growth during this period. However, after the peak in March 2022, the share price showed volatility with several fluctuations, including notable declines reaching $302 by mid-2025. This suggests market corrections or changing investor perceptions in the later years.

Book Value per Share (BVPS)

BVPS demonstrated a consistent and steady increase throughout the entire period under review. Starting around $125 in early 2020, it grew gradually to approximately $194 by mid-2025. This growth in book value per share reflects sustained increases in the company’s net asset base or retained earnings, indicative of sound operational performance and capitalization.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio presented notable fluctuations that generally mirrored the share price movements relative to the steadily increasing BVPS. Initially, the ratio hovered near 2.0 in early 2020, then escalated markedly to a peak above 3.5 by early 2022, suggesting heightened market expectations beyond the book value. Subsequently, the ratio decreased substantially, falling to as low as 1.56 by mid-2025. This decline indicates the share price’s retrenchment relative to the book value, potentially reflecting more conservative market valuations or increased risk perception during the latter period.

In summary, the company exhibited strong growth fundamentals through increasing book value per share, supported by early share price appreciation. Market valuations, as reflected in the P/BV ratio, peaked in early 2022 but eased considerably thereafter, suggesting recalibration of market expectations. The recent decline in share price and P/BV ratio warrants attention to underlying business developments and macroeconomic factors influencing investor confidence.