Elevance Health Inc. (NYSE:ELV)

The analysis of the financial ratios over the reported periods reveals several notable trends in valuation metrics.

Price to Earnings (P/E) Ratio

The P/E ratio shows an initial increase from 15.87 in early 2021 to a peak of 22.1 by the third quarter of 2021. Subsequently, it declines gradually with some fluctuations, reaching its lowest point of 12.71 in the third quarter of 2025, before a slight uptick to 14.05 in the final recorded quarter. This pattern suggests a period of rising valuation relative to earnings in 2021 followed by a gradual reduction in market expectations or earnings growth projections over the following years.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E ratio, the P/OP ratio rises sharply from 12.1 in early 2021 to nearly 20 by the third quarter of 2021. Thereafter, the ratio trends downward, with intermittent fluctuations, descending to a low of 9.63 by the third quarter of 2025 before a slight recovery. This denotes that the market valuation relative to operating profit experienced upward pressure initially, then tapered off towards lower valuation multiples, likely reflecting changing profitability expectations or market sentiment.

Price to Sales (P/S) Ratio

The P/S ratio follows a moderately increasing trend during 2021, peaking near 0.89 in the second quarter of 2022. Following this peak, it declines steadily, reaching approximately 0.36 by the third quarter of 2025, the lowest point observed. The reduction in this ratio over the later periods implies either a reduction in sales valuation multiples or growth in sales outpacing price appreciation, indicating conservative market valuations relative to sales.

Price to Book Value (P/BV) Ratio

The P/BV ratio starts at 2.23 in the first quarter of 2020, rising to a high above 3.5 in early 2022, marking a peak valuation relative to book value. After this peak, the ratio declines progressively, falling to a low of 1.56 by the third quarter of 2025 and showing a minor recovery in the final quarter. This downward trend suggests a decreasing premium market participants place on the company's book value over the latter periods, possibly due to reassessments of asset quality or capital structure.

Overall, the valuation multiples reach their peaks around late 2021 to early 2022, with subsequent consistent declines across all metrics through to 2025. This pattern points to a broader market correction or a shift in financial performance or growth expectations. The steady lowering of multiples across earnings, operating profit, sales, and book value indicates a more cautious valuation environment or weaker investor confidence in growth prospects in the latter years.

Share Price Trend

The share price experienced a general upward trajectory from early 2020 through early 2022, increasing from approximately $280 to a peak near $530. This rise reflected strong market confidence during this period. However, from mid-2022 onwards, the share price shows increased volatility with a notable decline towards the end of 2024 and into 2025, dropping to the range of approximately $300 to $350, indicating a weakening market valuation in the most recent periods.

Earnings Per Share (EPS) Development

Available EPS data beginning in the first quarter of 2021 reveals consistent profitability with values fluctuating in a relatively narrow band between roughly $17 and $29 per share. EPS showed steady growth early on, peaking around $28.85 in the third quarter of 2024. Despite some quarterly variability, EPS remained stable without any sharp declines, suggesting consistent operational performance throughout the periods observed.

Price-to-Earnings (P/E) Ratio Behavior

The P/E ratio, starting from the first quarter of 2021, exhibited fluctuations within a band of approximately 12.7 to 22.1. The ratio tended to increase when share prices rose faster than earnings growth, such as the peak around the third quarter of 2021 when the P/E reached over 22. Conversely, the ratio declined towards the end of the timeline, reaching lows near 12.7 in late 2025 which aligns with the observed share price decrease while EPS remained relatively stable. This indicates a market correction or reduced valuation multiples applied by investors in the latest periods.

Overall Insights

Over the span from 2020 to 2025, the company demonstrated steady earnings generation with consistent EPS figures. The initial period was characterized by strong share price appreciation and elevated P/E ratios suggesting positive market sentiment and growth expectations. The latter period shows a decrease in share price and P/E ratio, despite stable earnings, which may reflect external market pressures, shifts in investor sentiment, or concerns about future growth. The divergence between stable EPS and declining share price and P/E in recent quarters warrants further investigation into market conditions or company-specific factors affecting valuation.

The financial data indicates notable fluctuations over the reported periods, revealing distinctive trends in share price, operating profit per share, and the price-to-operating profit ratio.

Share Price

The share price demonstrates an overall upward trajectory from early 2020 through early 2022, rising from approximately $280 to a peak above $529 by March 2022. However, subsequent quarters show a considerable decline, with the price falling to around $302 by September 2025. The interim periods exhibit volatility, including some rebounds in the mid-2020s but culminating in a general downward trend in the latest quarters.

Operating Profit Per Share

Operating profit per share data begins in March 2021 and shows a steady increase up to late 2023, moving from roughly $24.5 to a peak near $34.99. After this peak, the figure stabilizes with minor fluctuations, maintaining values mostly above $30 in subsequent periods. This pattern suggests operational efficiency or profitability improvements during the middle period, followed by a plateau.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio started at a relatively low level in early 2021 at around 12.1, rising sharply to nearly 19.93 by September 2021, indicating that the share price grew faster relative to operating profit per share during that time. After this peak, the ratio generally declined, oscillating mostly between about 9.63 and 15.79 in later periods. The lowest ratio appears towards the end of the timeline, reflecting a possible adjustment in market valuation relative to operating earnings.

In summary, the company experienced significant appreciation in share price through early 2022, followed by a notable decline towards late 2025. Simultaneously, operating profit per share improved steadily before stabilizing at a high level. The price-to-operating profit ratio's fluctuations suggest that market expectations and valuation multiples were highest in mid-2021, with a normalization trend in subsequent years. These dynamics may indicate shifting investor sentiment and evolving operational performance influencing valuation.

The financial data presents an overview of the company's share price, sales per share, and the price-to-sales (P/S) ratio on a quarterly basis from March 31, 2020, through September 30, 2025. Analysis of these metrics reveals noteworthy trends and fluctuations over the observed periods.

Share Price Trend

The share price initially remained relatively stable around the $280–$296 range during the early quarters of 2020. A significant uptick occurred starting in the first quarter of 2021, reaching a peak high near $530 by the first quarter of 2022. This period marks a strong bullish phase in market valuation. However, after peaking, the share price experienced volatility with a downward trajectory, declining to around $390 by the second quarter of 2025. This indicates a phase of correction or loss in market confidence. Notably, a sharp dip is observed towards the end of the dataset, falling to approximately $303 before a modest recovery to about $350.

Sales per Share Progression

Sales per share values begin to be reported from the first quarter of 2021, showing a consistent upward trend across all subsequent quarters. The sales per share increased steadily from about $493 in early 2021 to over $869 by the third quarter of 2025. This steady growth underscores positive revenue performance and expansion in per-share earnings, reflecting operational strength and possibly successful business strategies.

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

The P/S ratio began at 0.6 in early 2021 and exhibited fluctuations throughout the period. The ratio increased to a peak near 0.89 during mid-2022, reflecting heightened investor valuation relative to sales. Following this peak, the P/S ratio generally declined with some intermittent increases, falling to a low of about 0.36 by the third quarter of 2025. This downward trend in the P/S ratio, despite rising sales per share, suggests that the share price growth did not keep pace with sales growth during later periods, indicating a relative decrease in market valuation multiples.

Overall Insights

The data illustrates a scenario where the company experienced strong share price appreciation aligned with increasing sales per share in initial years. However, more recent years reveal a divergence between sales growth and share price performance, leading to lower valuation multiples. The declining P/S ratio combined with fluctuating share prices indicates changing market perceptions or external factors influencing investor sentiment. Nevertheless, the company's operational metrics, as represented by rising sales per share, demonstrate continued positive underlying business performance.

Share Price Trend

The share price demonstrated an overall upward trend from March 2020 through early 2025, with some notable fluctuations. Starting at approximately $280.61, the price rose steadily to a peak of around $529.84 by March 2022. Subsequently, the price experienced volatility, dropping to nearly $390.50 in June 2025 after some intermittent recoveries. This pattern indicates a period of strong growth in the first half of the timeline, followed by a correction and increased volatility in the later quarters.

Book Value Per Share (BVPS) Evolution

The book value per share showed consistent growth across the entire period. Beginning at $125.71 in March 2020, BVPS increased steadily quarter over quarter, reaching $197.77 by September 2025. This reflects a continuous strengthening of the company’s net asset value on a per-share basis, implying stable capital accumulation and retained earnings over time.

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

The price-to-book ratio exhibited substantial variation throughout the timeline. Initially, the ratio hovered between 2.06 and 2.23, indicating a moderate premium over book value. It then climbed significantly to a high of 3.55 by March 2022, coinciding with the peak in share price. Following this peak, the P/BV ratio declined sharply to 1.56 in June 2025, showing a diminishing market valuation relative to the underlying book value. This suggests that the market became more conservative in valuing the company's equity, possibly reflecting changes in investor sentiment or external market conditions.

Summary of Financial Market Valuation

Overall, the data illustrates a period of strong market optimism and share price appreciation up to early 2022, backed by consistent growth in book value per share. However, the subsequent decline in both share price and P/BV ratio indicates a reassessment by the market, leading to a lower valuation relative to the company’s book value, despite ongoing growth in intrinsic value measures. The divergence between stable BVPS growth and declining market multiples may highlight concerns or uncertainties impacting investor confidence in the latter part of the timeline.