| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 184.20 | -47 |
| Intrinsic value (DCF) | 474.28 | 38 |
| Graham-Dodd Method | 66.40 | -81 |
| Graham Formula | 218.80 | -37 |
Elevance Health Inc. (formerly Anthem, Inc.) is a leading health benefits company headquartered in Indianapolis, Indiana, serving approximately 118 million people across the U.S. The company provides a comprehensive portfolio of medical, digital, pharmacy, behavioral, clinical, and care solutions aimed at improving health outcomes and simplifying healthcare access. Operating in the Medical Equipment & Services sector, Elevance Health plays a pivotal role in the healthcare industry by integrating digital innovation with traditional health benefits to enhance patient care. With a market capitalization exceeding $84 billion, the company is a dominant player in the managed healthcare space, leveraging its extensive network and diversified services to maintain a competitive edge. Elevance Health’s rebranding in 2022 reflects its strategic shift towards a more holistic, tech-driven approach to healthcare, positioning it as a forward-thinking leader in an evolving industry.
Elevance Health presents a compelling investment opportunity due to its strong market position, diversified revenue streams, and consistent financial performance. With a revenue of $176.81 billion and net income of $5.98 billion in the latest fiscal year, the company demonstrates robust profitability. Its beta of 0.665 suggests lower volatility compared to the broader market, making it a relatively stable investment in the healthcare sector. The company’s operating cash flow of $5.81 billion and a solid dividend yield further enhance its attractiveness. However, investors should monitor regulatory risks in the healthcare industry and the company’s ability to sustain growth amid rising healthcare costs and competitive pressures.
Elevance Health’s competitive advantage lies in its extensive scale, diversified service offerings, and integration of digital health solutions. The company’s rebranding and strategic focus on holistic care have strengthened its market positioning, allowing it to differentiate from traditional health insurers. Its large member base (118 million) provides significant bargaining power with healthcare providers, ensuring cost efficiencies. Additionally, Elevance’s investments in digital health and pharmacy services enhance customer retention and engagement. However, the company faces stiff competition from other managed care giants, which also leverage scale and technology. Regulatory scrutiny and pricing pressures in the U.S. healthcare market could impact margins. Elevance’s ability to innovate and adapt to value-based care models will be critical in maintaining its leadership position.