Elevance Health (ELV): Assessing Valuation as 2025 Guidance Reaffirmed and Stakeholder Engagement Intensifies

Elevance Health (ELV) has drawn increased attention after recently reaffirming its 2025 earnings guidance and benefit expense ratio ahead of a series of investor meetings. The company’s focus on proactive engagement signals confidence to the market.

See our latest analysis for Elevance Health.

Elevance Health has made headlines with its proactive communication, but the market response has been anything but steady. The latest share price rally of 3.8% in a single day only partially offsets recent volatility, as the stock remains down 13.8% year-to-date. Looking further back, long-term shareholders have felt the pinch, with a one-year total shareholder return of -22.3%. Recent conference appearances and clarified financial outlooks have sparked some optimism, but overall momentum appears mixed as investors weigh short-term confidence against persistent long-term headwinds.

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With shares trading nearly 23% below analyst price targets and long-term returns lagging, investors are left wondering if Elevance Health is now undervalued or if future growth challenges are already reflected in the stock’s price.

Most Popular Narrative: 19% Undervalued

Elevance Health’s most followed narrative calls for a fair value well above the latest close of $315.25, hinting at room for upside. The current valuation is based on more than just broad sector trends and is anchored in operational and margin catalysts that could reshape earnings projections.

The company is aggressively leveraging advanced analytics, digitization, and AI-enabled tools to streamline clinical workflows, automate processes, reduce fraud, and improve cost management. These initiatives are expected to lower administrative costs, increase operational efficiency, and gradually stabilize or expand net margins.

Read the complete narrative.

Want to see the math and the momentum? The narrative's bold fair value depends on significant margin expansion. Curious what financial levers analysts expect to pull Elevance Health back to growth? Unlock the full story and discover the assumptions that drive this undervaluation call.

Result: Fair Value of $389.16 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent cost pressures in Medicaid and delays in margin recovery could quickly undermine the bullish thesis if not addressed soon.

Find out about the key risks to this Elevance Health narrative.

Build Your Own Elevance Health Narrative

If you think this view misses something or you’d rather see the numbers for yourself, you can craft your own take in just a few minutes. Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Elevance Health.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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