Elevance Health Inc.
Orin's own judgment of how firmly the evidence points one way — not the chance the price goes up.
Elevance Health's Q3 2026 results, reported on 21 Oct, delivered a substantial earnings beat of $6.99 actual EPS versus $4.71 estimated, and management raised full-year 2026 guidance while expressing confidence in at least 12% adjusted EPS growth in 2027 from a baseline of at least $26.753.
The stock trades at a 19.56x P/E, an 18.2% discount to the peer median of 23.93x, and CEO Gail Boudreaux purchased shares on 17 Jul at approximately $366, signaling insider confidence ahead of the turnaround. While FY2025 operating margin compressed to 4.1% from 6.5% in FY2021 and FCF margin fell to 1.6% from 5.3%, the Reuters headline citing better medical cost management suggests margin pressure may be inflecting, making the risk-reward attractive at this valuation discount.
What could go wrong
- Margin compression not yet reversed. FY2025 operating margin of 4.1% and net margin of 2.8% remain well below FY2021 levels of 6.5% and 4.4% respectively; if medical cost ratios do not improve, earnings power stays constrained.
- Overbought technicals. RSI at 72.96 with last close of $440.18 well above the 50-day MA of $405.41 and 200-day MA of $370.05 increases near-term pullback risk.
- Rising leverage. Total debt grew from $24.89B in FY2021 to $33.24B in FY2025 while free cash flow declined from $7.28B to $3.17B over the same period, weakening the balance sheet.
- Smart money outflows. The smart money score turned slightly negative at -0.02 as of the quarter ended 30 Jun, down from positive readings in prior quarters, suggesting institutional positioning has softened.
What would change my mind
Where this comes from: earnings vs estimates · news, 21 Oct · peer comparison · insider trades. Orin's read on ELV; not advice.
How has the share price moved?
Up 23.1% over twelve months, from $342.49 on 27 Oct 2025 to $421.49 at the Tue 27 Oct 2026 close. Its highest close in that time was $445.28 on 22 Oct 2026; the last close is 5.3% below it.
- Green line: the closing price each trading day.
- Grey line: the average closing price over the last 50 trading days.
- Dashed amber line: the same over the last 200 trading days — a slower, smoother line.
- Bars along the bottom: shares traded each day — green when it closed higher than the day before, rose when lower (the most, 5.8M, on 27 Jan 2026).
- Flags: the company's filings, on the day they were made (a 10-Q is the quarterly report and a 10-K the annual report; an 8-K reports a major event).
On file
All ELV filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| BlackRock | $7.3B | 0.1% |
| Vanguard Capital Management | $5.4B | 0.1% |
| State Street | $4.0B | 0.1% |
| Wellington Management Group | $3.6B | 0.6% |
| Vanguard Portfolio Management | $2.4B | 0.1% |
| Geode Capital Management | $2.0B | 0.1% |
| Harris Associates | $1.9B | 2.5% |
| Invesco | $1.6B | 0.1% |
| T. Rowe Price Associates | $1.6B | 0.2% |
| Norges Bank | $1.5B | 0.2% |
127 of the 815 filers we track · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 105 Form 4 filings; open-market trades net −$3.3M. Of the 50 on hand, 4 were open-market purchases and 18 sales — the rest are grants, option exercises and tax withholding.
Ask Orin about ELV
Orin answers questions about ELV from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →How is it priced, against its own past and its sector?
Priced at 18.0× its last 12 months of profit (Tue 27 Oct close) — higher than in 2 of its last 5 fiscal years (middle 18.4×); the typical Healthcare company on the NYSE is at 25.8×.
| Measure | Now | Its usual | Sector |
|---|---|---|---|
| P/E | 18.0×near usual | 18.4× | 25.8× |
| P/S | 0.45×below usual | 0.64× | — |
| EV/EBITDA | 12.6×near usual | 12.4× | — |
| P/B | 2.1×below usual | 2.8× | — |
- "Its usual" is the middle of its own last 5 fiscal years.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
P/S: the company's total market value divided by one year of revenue. Used when there is no profit to measure.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
P/B: the share price divided by the book value per share — what the company owns minus what it owes, as its accounts record it. When book value is tiny, P/B swings wildly and says little.
What do the analysts who cover it publish?
The analysts' average 12-month price target is $467 (from $395 to $523) — 11% above the Tue 27 Oct close price. That is their published opinion, not Orin's.
$467
$395 – $523 · +11% against the last close
- 14 buy or overweight
- 6 hold
- 0 underweight or sell
Price target: the share price an analyst publishes for about 12 months ahead. It is the opinion of the firm that wrote it; the average is across the firms that cover the company.
Overweight / underweight: analysts' rating words: overweight means the firm expects the stock to do better than the others it covers, underweight worse. Their words, not Orin's.
How is it priced next to the companies it is compared to?
Priced at 18.0× its last 12 months of profit; the middle P/E of the 5 companies it is compared to that made a profit is 23.2×.
| Company | Market value | P/E | EV/EBITDA | Gross margin | Net margin | ROE |
|---|---|---|---|---|---|---|
| ELVElevance Health Inc. | $91B | 18.0× | 12.6× | 36.6% | 2.5% | 12% |
| CICigna Corporation | $80B | 13.3× | 11.3× | 9.4% | 2.1% | 14% |
| CNCCentene Corporation | $34B | 23.2× | 7.6× | 11.7% | 0.8% | 7% |
| CVSCVS Health Corporation | $104B | 9.4× | 8.5× | 14.2% | 2.6% | 14% |
| HUMHumana Inc. | $49B | 38.6× | 18.3× | 13.7% | 0.9% | 7% |
| UNHUnitedHealth Group Incorporated | $368B | 23.4× | 14.9× | 22.8% | 3.5% | 16% |
- The list of companies is the data vendor's choice, so it can include a company a person would not have picked.
Market value: the share price times the number of shares — what the whole company is priced at.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
Gross margin: the share of each $1 of sales left after the direct cost of making what was sold.
Net margin: the share of each $1 of sales kept as profit after every cost. Below zero, the company lost money.
ROE: return on equity: one year of profit as a share of the shareholders' money in the business (its book value).
Is it priced high or low compared with its own past?
Priced at 18.0× its last 12 months of profit (Tue 27 Oct close). It has no full fiscal year on file since its history starts, so there is nothing of its own to compare with.
- Now18.0×
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
Fiscal year (FY): the company's own 12-month accounting year, which need not match the calendar year.
How has its sector been priced?
Healthcare companies on the NYSE were priced at a typical 25.8× their yearly profit (Tue 27 Oct close).
- Now25.8×
- Each year is the middle of that calendar year's daily sector P/E; "Now" is the Tue 27 Oct close figure, the same one in the table above.
Sector P/E: the middle P/E of the companies in the same sector on the same stock exchange, as the data vendor works it out each day.
What does a cash-flow model say a share is worth?
A standard cash-flow model puts it at $952 a share — 126% above the $421.61 price it was computed against (27 Oct).
| Model | Value a share | Against the price then |
|---|---|---|
| Standard | $952 | 126% above $421.61 |
| Levered | $783 | 86% above $421.61 |
Discounted cash flow: a model's estimate of what the company is worth today, from the cash it is forecast to make in future years. Small changes in the forecast move it a lot, and it says little about a company that loses money.
Standard / levered: two versions of the cash-flow model: the standard one counts the cash before the company pays its lenders, the levered one after.