Elevance Health Inc. (NYSE:ELV)

The financial ratios exhibit notable trends over the period from early 2020 to the first quarter of 2025. Each metric demonstrates varying patterns that provide insights into valuation and market perception relative to earnings, operating profit, sales, and book value.

Price to Earnings (P/E) Ratio

The P/E ratio data begins from March 2021, showing an upward trajectory initially, rising from 15.87 to a peak of 22.1 in September 2021. Following this peak, the ratio declined steadily through 2022, fluctuating around 18 to 20 before exhibiting a gradual downward trend through 2023 and early 2024. By the first quarter of 2025, the P/E ratio reached 15.88, indicating a reversion to levels close to early 2021. This pattern suggests that investor expectations of future earnings growth were elevated in mid-2021 but tempered thereafter, with valuation becoming more conservative in recent periods.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio mirrors the P/E trend with some variability. Starting at 12.1 in March 2021, it surged to nearly 20 by September 2021, pointing to increased valuation against operating profit. Similar to P/E, it declined after the peak, with values stabilizing mostly in the 13 to 15 range for the subsequent years. Toward the end of the timeframe, the ratio dipped further to approximately 12.7 by the first quarter of 2025. This trend indicates a reduced premium placed on operating profit, potentially reflecting cautious market sentiment or changes in operating profitability.

Price to Sales (P/S) Ratio

The P/S ratio shows a modest upward trend from 0.6 in March 2021 to a high of 0.89 in June 2022, suggesting increased valuation relative to sales at that time. However, after mid-2022, the ratio gradually decreased, returning to lower levels around 0.5 by early 2025. This decline may indicate slower sales growth expectations or a shift in market valuation focus, signaling a more conservative view on sales performance in the later periods.

Price to Book Value (P/BV) Ratio

This ratio was available from the beginning of 2020, starting at 2.23 and showing moderate fluctuations. It rose steadily through 2021, reaching a peak around 3.55 in March 2022, which implies enhanced investor valuation relative to net asset value during that time. Subsequently, the P/BV ratio declined progressively throughout 2022 and 2023, dropping to around 2.21 by the first quarter of 2025. This decline suggests a decreasing market premium on the book value, possibly reflecting concerns regarding asset quality, profitability, or broader market conditions affecting the company.

Overall, the valuation multiples peaked around 2021 to early 2022, followed by a general downtrend across all examined ratios through early 2025. This pattern indicates a cautious market outlook in recent years after a period of higher valuation. The convergence of P/E, P/OP, P/S, and P/BV ratios toward lower values suggests tempered expectations for earnings, operating profits, sales growth, and asset valuation going forward.

The share price demonstrates notable volatility across the observed periods. Beginning at approximately $280 in early 2020, it experienced a steady ascent, peaking near $529 in the first quarter of 2022. Subsequently, the share price declined with intermittent recoveries, settling at around $415 by the first quarter of 2025. This pattern suggests an overall growth phase followed by a correction and moderate stabilization.

Earnings per share (EPS) data, available from the first quarter of 2021 onwards, shows relatively stable performance with fluctuations within a narrow range. EPS values ranged roughly between $17.35 and $28.85, peaking during the third quarter of 2024. The EPS trend indicates consistent profitability with minor variations quarter to quarter, reflecting operational stability over time.

The price-to-earnings (P/E) ratio fluctuates moderately throughout the periods with a general range from approximately 14.85 to 22.10. Early in 2021, the ratio displayed an upward trend reaching the highest point in the third quarter of 2021, followed by a gradual decline and subsequent stabilization near 15.88 by the first quarter of 2025. This trend suggests varying market valuation relative to earnings, potentially influenced by changing investor sentiment or external market conditions.

Share Price

Exhibits growth from early 2020 through early 2022, followed by a decline and periods of recovery, indicating market volatility and shifting valuation over time.

Earnings per Share (EPS)

Remains stable with modest fluctuations post-2021, reflecting consistent earnings capability and operational performance stability.

Price-to-Earnings (P/E) Ratio

Varies between 15 and 22 predominantly, with initial increase and subsequent decline, suggesting changing market confidence and valuation context relative to earnings.

Share Price Trend

The share price exhibited an overall upward trajectory from March 31, 2020, through March 31, 2022, increasing from $280.61 to a peak of $529.84. Following this peak, the share price experienced volatility with notable declines and recoveries, reaching $509.38 by December 31, 2023. From the start of 2024, however, the share price declined steadily, reaching $390.50 by June 30, 2024, before a slight recovery to $415.90 by March 31, 2025. This pattern reflects periods of growth interrupted by downward adjustments toward the most recent quarters.

Operating Profit per Share (OP)

Operating profit per share data begins from March 31, 2021, at $24.50 and generally shows a positive growth trend over the periods observed. The OP per share increased steadily from $24.50 to a high of $34.99 by September 30, 2024. A minor decrease follows this peak, with the figure descending to $32.74 by March 31, 2025. This gradual increase suggests improving operational profitability with some recent stabilization or slight decline.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio presents variable movements that inversely correspond to changes in share price and operating profit per share. Starting at 12.1 in March 31, 2021, the ratio rose sharply to 19.93 in September 30, 2021, indicating a period where share price gains outpaced operating profit growth. Subsequently, the ratio mostly declined or stabilized between approximately 12 and 17, demonstrating that market valuations relative to operating profit sought a more balanced level. Notably, the ratio dropped below 13 by March 31, 2025, corresponding with a reduction in share price coupled with relatively stable operating profit per share.

Interrelation of Metrics

The data suggest that improvements in operating profit per share were generally associated with an increase in share price, particularly evident from 2021 through early 2022. However, periods of share price volatility, especially post-March 2022, indicate that market valuation dynamics may have been influenced by external factors beyond operating profitability. The P/OP ratio’s variations highlight these shifts, reflecting changing investor sentiment or market conditions that affected valuation multiples.

Summary

Overall, the financial indicators demonstrate a company that has improved its operational earnings on a per-share basis over the examined timeframe. Share prices followed a strong upward trend initially but became more volatile and declined in the latter periods, partially decoupling from the steady growth in operating profit per share. The P/OP ratio adjustments emphasize valuation shifts aligned with these share price fluctuations. This analysis points to evolving market perceptions and possibly broader economic or sector-specific influences impacting the company’s market valuation despite consistent underlying profitability growth.

Share Price Trend

The share price showed a general upward trend starting from approximately $280 at the beginning of 2020, reaching its peak near $530 in the first quarter of 2022. After this peak, there was a noticeable decline and fluctuation ranging between roughly $390 and $525 through 2023 and into early 2025. The highest point observed was $529.84 in March 2022, while a low of approximately $390.5 was recorded in March 2025, indicating increased volatility in the latter periods.

Sales per Share Evolution

Sales per share values began recording from March 2021, showing a steady and consistent increase over time. Starting at approximately $493, sales per share grew to about $804 by March 2025. This upward trend suggests continuous growth in revenue generation per share, with increments occurring each quarter without any observed regression, signifying positive operational performance.

Price-to-Sales (P/S) Ratio Dynamics

The P/S ratio demonstrated significant fluctuations over the analyzed time frame. Initially, in early 2021, the ratio was about 0.6, then it increased to a maximum near 0.89 by mid-2022. Subsequently, there was a declining trend in this ratio, reaching lows around 0.51 to 0.52 by early 2025. This pattern reflects that while sales per share rose steadily, the share price increases lagged in the final periods, contributing to a declining valuation relative to sales.

Combined Interpretation

Overall, the data indicates that although sales per share experienced consistent growth, the share price did not maintain the same momentum post-2022, leading to a reduced P/S ratio. The decline in the P/S ratio towards the end of the period might indicate a reassessment of valuation multiples by the market or external factors influencing the share price. The share price volatility coupled with steady sales growth suggests a potential divergence between market expectations and company operational results in recent quarters.

Share Price Trends

The share price exhibited a generally upward trend from March 2020 through March 2022, rising from approximately $280 to a peak near $530. This reflects a significant appreciation of about 89% over two years. However, post-March 2022, fluctuations became more pronounced. There was a decline noted through late 2022, followed by a modest recovery and then a gradual downward trend starting mid-2023. By March 2025, the share price decreased to approximately $416, representing a notable reduction from the peak value recorded in early 2022.

Book Value per Share (BVPS) Trends

The book value per share showed steady and consistent growth throughout the entire period. Beginning at approximately $126 in March 2020, it increased to about $188 by March 2025. This reflects a long-term incremental gain, indicative of sustained increases in net asset value on a per-share basis. The growth is relatively linear without significant volatility or downturns.

Price-to-Book Value (P/BV) Ratio Trends

The P/BV ratio demonstrated variable dynamics reflective of the interactions between share price and book value changes. Initially, the ratio hovered around 2.2 in early 2020, falling slightly below 2.1 mid-2020, before then rising to a peak above 3.5 by March 2022. This peak indicates that the share price was significantly elevated in relation to the book value at that time. Following this peak, the P/BV ratio declined steadily, falling to approximately 2.2 by March 2025. This decrease aligns with the reduction in share price while book value continued to grow, suggesting a realignment towards more conservative market valuations.

Summary of Observations

Over the period analyzed, book value per share showed stable, positive growth indicative of strengthening fundamental equity value. Share price initially grew substantially, suggesting strong market confidence or favorable market conditions until early 2022, after which volatility increased and the price softened. The P/BV ratio’s peak around early 2022 implies a period of market optimism or premium valuation relative to book value. The subsequent decline in P/BV reflects a market correction or more cautious investor sentiment, as share price retreated while book value maintained upward momentum. Overall, the data suggest a maturing valuation environment with a focus shifting increasingly towards fundamental asset values rather than price exuberance.