Elanco Animal Health Incorporated

NYSE:ELAN Stock Report

Market Cap: US$5.7b

Elanco Animal Health Valuation

Is ELAN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ELAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ELAN ($11.63) is trading below our estimate of fair value ($49.66)

Significantly Below Fair Value: ELAN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ELAN?

Key metric: As ELAN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ELAN. This is calculated by dividing ELAN's market cap by their current earnings.
What is ELAN's PE Ratio?
PE Ratio28x
EarningsUS$205.00m
Market CapUS$5.75b

Price to Earnings Ratio vs Peers

How does ELAN's PE Ratio compare to its peers?

The above table shows the PE ratio for ELAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19x
OGN Organon
2.9x-8.3%US$3.8b
JAZZ Jazz Pharmaceuticals
16.1x16.3%US$7.4b
PBH Prestige Consumer Healthcare
18.9x5.3%US$3.9b
CORT Corcept Therapeutics
38.3x41.4%US$5.4b
ELAN Elanco Animal Health
28x1.6%US$5.7b

Price-To-Earnings vs Peers: ELAN is expensive based on its Price-To-Earnings Ratio (28x) compared to the peer average (19x).

Price to Earnings Ratio vs Industry

How does ELAN's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
OGN Organon
2.9x-8.3%US$3.75b
NDOI Endo
0.5xn/aUS$1.83b
KPRX Kiora Pharmaceuticals
1.8x-40.4%US$9.81m
EDXC Endexx
0.8xn/aUS$5.57m
ELAN 28.0xIndustry Avg. 16.7xNo. of Companies9PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ELAN is expensive based on its Price-To-Earnings Ratio (28x) compared to the US Pharmaceuticals industry average (16.7x).

Price to Earnings Ratio vs Fair Ratio

What is ELAN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ELAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: ELAN is expensive based on its Price-To-Earnings Ratio (28x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ELAN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$11.63
US$17.50
+50.5%
13.1%US$20.00US$14.00n/a12
Dec ’25US$13.21
US$17.84
+35.1%
11.9%US$20.00US$14.00n/a11
Nov ’25US$12.60
US$18.33
+45.4%
10.1%US$20.00US$15.00n/a10
Oct ’25US$14.50
US$18.63
+28.5%
11.5%US$22.00US$15.00n/a10
Sep ’25US$15.47
US$18.73
+21.0%
9.2%US$21.00US$16.00n/a10
Aug ’25US$13.04
US$18.93
+45.1%
10.4%US$22.00US$16.00n/a10
Jul ’25US$14.10
US$19.30
+36.9%
13.8%US$23.00US$16.00n/a11
Jun ’25US$17.68
US$19.21
+8.6%
13.0%US$23.00US$16.00n/a11
May ’25US$13.15
US$17.76
+35.0%
11.1%US$20.00US$14.00n/a12
Apr ’25US$15.97
US$17.09
+7.0%
16.4%US$20.00US$11.00n/a11
Mar ’25US$16.03
US$16.27
+1.5%
18.2%US$20.00US$11.00n/a11
Feb ’25US$14.79
US$15.77
+6.6%
17.8%US$20.00US$11.00n/a11
Jan ’25US$14.90
US$13.80
-7.4%
17.7%US$18.00US$10.00n/a10
Dec ’24US$12.40
US$13.33
+7.5%
17.7%US$18.00US$10.00US$13.219
Nov ’24US$8.63
US$13.28
+53.9%
20.0%US$18.00US$9.50US$12.609
Oct ’24US$11.24
US$14.06
+25.1%
19.0%US$19.00US$9.50US$14.508
Sep ’24US$12.39
US$13.94
+12.5%
19.7%US$19.00US$9.50US$15.478
Aug ’24US$11.97
US$13.19
+10.2%
25.4%US$19.00US$8.50US$13.048
Jul ’24US$10.06
US$13.19
+31.1%
25.4%US$19.00US$8.50US$14.108
Jun ’24US$8.60
US$13.19
+53.3%
25.4%US$19.00US$8.50US$17.688
May ’24US$9.60
US$13.63
+41.9%
21.4%US$19.00US$9.00US$13.158
Apr ’24US$9.40
US$15.06
+60.2%
20.9%US$20.00US$10.50US$15.978
Mar ’24US$11.26
US$15.44
+37.1%
19.0%US$20.00US$10.50US$16.038
Feb ’24US$14.06
US$16.75
+19.1%
15.1%US$20.00US$12.00US$14.798
Jan ’24US$12.22
US$17.25
+41.2%
18.7%US$23.00US$12.00US$14.908
Dec ’23US$13.19
US$17.38
+31.7%
18.4%US$23.00US$12.00US$12.408

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 03:04
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Elanco Animal Health Incorporated is covered by 28 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jasper HellwegArgus Research Company
Ishan MajumdarBaptista Research
Balaji PrasadBarclays