ELV trades against a final fair-value range of $411.38-$853.64, with the midpoint set by the accepted valuation synthesis rather than earlier draft model outputs. Fair value range: low $411, high $854, with mid-point at $632.
Trades below fair value with a meaningful cushion to the midpoint.
Fair value
$632
Margin of safety
+39.6%
Confidence
77/100
Moat
9/10
Educational analysis only — not financial advice. Always do your own due diligence.
$381.75Price
Low $411.38
Mid $632.32
High $853.64
ELV trades against a final fair-value range of $411.38-$853.64, with the midpoint set by the accepted valuation synthesis rather than earlier draft model outputs.
Scale advantages driven by a
Scale advantages driven by a massive member base in Anthem.
Network effects within the integrated
Network effects within the integrated Anthem and Carelon ecosystems.
Bull thesis
Massive margin of safety with implied -6.18% perpetual growth at the current price.
§2 Cenário pessimista
A severe scenario where elevated MLR persists due to structural shifts in medical utilization, compounded by adverse Medicare rate changes, significantly compressing operating margins below their historical norms.
Free cash flow for ELV (ELV) is computed as operating cash flow minus capital expenditure. We report both the absolute level and the FCF margin against revenue, with five years of trajectory.
Operating cash flow is the primary signal: when OCF is negative or significantly below net income, the cash-flow subsection flags the divergence and traces the cause to working-capital, deferred-revenue, or earnings-quality effects.
Capital expenditure is reported as a percentage of revenue alongside the absolute number. Heavy investment phases are separated from harvesting phases so reinvestment intent is legible.
The financing activity row tracks dividends paid, share repurchases, and net debt issuance. Together with FCF, it answers whether buybacks and dividends are funded organically or by issuing debt.
FAQ
ELV — frequently asked questions
Based on our latest analysis, ELV looks meaningfully undervalued. The current price is $382 versus a composite fair-value midpoint of $632 (range $411–$854), which implies roughly 65.6% upside to the midpoint.
Our composite fair-value range for ELV is $411–$854, with a midpoint of $632. The range is triangulated across multiple valuation models (discounted earnings, forward earnings scenarios, peer multiples, and where applicable owner earnings or reverse DCF) and weighted by reliability for ELV's archetype.
Our current rating for ELV is Strong Buy with a confidence score of 77/100. ELV is rated Strong Buy at $381.75 versus the reconciled fair value midpoint of $632.32, implying +65.64% upside/downside. Confidence is separately disclosed at 77/100. This is research for educational purposes, not personalized investment advice.
The top risks our latest report flags for ELV are: Unchecked Medical Cost Inflation; Severe Regulatory Reimbursement Cuts; Carelon Growth Stagnation. The single biggest risk is Unchecked Medical Cost Inflation: Sustained elevated medical utilization drives MLR structurally higher, compressing operating margins permanently below historical averages.
Our current rating for ELV is Strong Buy, issued with a confidence score of 77/100 and a moat score of 9/10. The rating reflects the composite fair-value range ($411–$854) versus the current price of $382.
ELV is classified as a mature compounder stock. Archetype determines how every downstream parameter — discount rate, terminal growth, deceleration curve, terminal multiple, scenario probability weights, scorecard weights, and which valuation models are prioritized — is calibrated for ELV.
