Stock Analysis on Net

Elevance Health Inc. (NYSE:ELV)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Elevance Health Inc., FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Shareholders’ net income 5,980 5,987 6,025 6,104 4,572
Net (gain) loss attributable to noncontrolling interests (9) 4 (6) (9)
Net noncash charges 1,556 2,605 2,127 1,076 862
Changes in operating assets and liabilities (1,719) (535) 253 1,193 5,254
Net cash provided by operating activities 5,808 8,061 8,399 8,364 10,688
Interest paid, net of tax1 935 802 680 632 582
Purchases of property and equipment (1,256) (1,296) (1,152) (1,087) (1,021)
Free cash flow to the firm (FCFF) 5,487 7,567 7,927 7,909 10,249

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Elevance Health Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Elevance Health Inc. FCFF decreased from 2022 to 2023 and from 2023 to 2024.

Interest Paid, Net of Tax

Elevance Health Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR1 24.50% 22.30% 22.50% 23.10% 26.70%
Interest Paid, Net of Tax
Interest paid, before tax 1,239 1,032 878 822 794
Less: Interest paid, tax2 304 230 198 190 212
Interest paid, net of tax 935 802 680 632 582

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 See details »

2 2024 Calculation
Interest paid, tax = Interest paid × EITR
= 1,239 × 24.50% = 304


Enterprise Value to FCFF Ratio, Current

Elevance Health Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 99,582
Free cash flow to the firm (FCFF) 5,487
Valuation Ratio
EV/FCFF 18.15
Benchmarks
EV/FCFF, Competitors1
Abbott Laboratories 34.37
Cigna Group 11.75
CVS Health Corp. 16.54
Intuitive Surgical Inc. 132.30
Medtronic PLC 22.28
UnitedHealth Group Inc. 23.38
EV/FCFF, Sector
Health Care Equipment & Services 22.90
EV/FCFF, Industry
Health Care 22.83

Based on: 10-K (reporting date: 2024-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Elevance Health Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 85,443 107,367 105,582 100,728 61,875
Free cash flow to the firm (FCFF)2 5,487 7,567 7,927 7,909 10,249
Valuation Ratio
EV/FCFF3 15.57 14.19 13.32 12.74 6.04
Benchmarks
EV/FCFF, Competitors4
Abbott Laboratories 35.21 36.51 23.24 23.47 36.94
Cigna Group 10.77 10.44 13.38 14.17 9.16
CVS Health Corp. 15.91 11.96 10.00 10.30 9.42
Intuitive Surgical Inc. 153.43 170.92 85.45 56.01 76.70
Medtronic PLC 20.58 26.54 20.32 33.84 21.43
UnitedHealth Group Inc. 20.57 17.59 19.30 22.21 15.82
EV/FCFF, Sector
Health Care Equipment & Services 21.76 18.86 17.40 19.23 15.32
EV/FCFF, Industry
Health Care 22.99 24.06 17.76 17.08 18.03

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 See details »

2 See details »

3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 85,443 ÷ 5,487 = 15.57

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Elevance Health Inc. EV/FCFF ratio increased from 2022 to 2023 and from 2023 to 2024.