Elevance Health Inc. (ELV)

Elevance executes disciplined commercial pricing resets matching low-double-digit cost inflation while state Medicaid rate adjustments gradually restore underwriting margins. Carelon continues steady 5% revenue expansion with 5.3% pharmacy operating margins. Consolidated operating margins normalize from 3.6% in 2025 to 4.2% by 2030, supporting our fair value midpoint of $474.64 (+9.33% implied upside).

• Operating margin normalizes gradually toward long-term targets from FY2026 through FY2030
• Revenue grows at a steady low-single-digit pace over the multi-year forecast horizon
• Adjusted EPS compounding aligns with baseline guidance through FY2027
• Terminal multiple holds near historical median levels supported by stable cost of equity