ELAN Relative Valuation
ELAN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ELAN is overvalued; if below, it's undervalued.
Historical Valuation
Elanco Animal Health Inc (ELAN) is now in the Fair zone, suggesting that its current forward PE ratio of 16.90 is considered Fairly compared with the five-year average of 20.48. The fair price of Elanco Animal Health Inc (ELAN) is between 13.23 to 23.90 according to relative valuation methord.
Relative Value
Fair Zone
13.23-23.90
Current Price：14.07
Fair
17.41
PE
1Y
3Y
5Y
Trailing
Forward
12.38
EV/EBITDA
Elanco Animal Health Inc. (ELAN) has a current EV/EBITDA of 12.38. The 5-year average EV/EBITDA is 14.46. The thresholds are as follows: Strongly Undervalued below 7.58, Undervalued between 7.58 and 11.02, Fairly Valued between 17.91 and 11.02, Overvalued between 17.91 and 21.35, and Strongly Overvalued above 21.35. The current Forward EV/EBITDA of 12.38 falls within the Historic Trend Line -Fairly Valued range.
14.46
EV/EBIT
Elanco Animal Health Inc. (ELAN) has a current EV/EBIT of 14.46. The 5-year average EV/EBIT is 16.97. The thresholds are as follows: Strongly Undervalued below 8.54, Undervalued between 8.54 and 12.76, Fairly Valued between 21.19 and 12.76, Overvalued between 21.19 and 25.40, and Strongly Overvalued above 25.40. The current Forward EV/EBIT of 14.46 falls within the Historic Trend Line -Fairly Valued range.
1.51
PS
Elanco Animal Health Inc. (ELAN) has a current PS of 1.51. The 5-year average PS is 2.03. The thresholds are as follows: Strongly Undervalued below 0.39, Undervalued between 0.39 and 1.21, Fairly Valued between 2.84 and 1.21, Overvalued between 2.84 and 3.66, and Strongly Overvalued above 3.66. The current Forward PS of 1.51 falls within the Historic Trend Line -Fairly Valued range.
23.67
P/OCF
Elanco Animal Health Inc. (ELAN) has a current P/OCF of 23.67. The 5-year average P/OCF is 20.03. The thresholds are as follows: Strongly Undervalued below -12.67, Undervalued between -12.67 and 3.68, Fairly Valued between 36.39 and 3.68, Overvalued between 36.39 and 52.74, and Strongly Overvalued above 52.74. The current Forward P/OCF of 23.67 falls within the Historic Trend Line -Fairly Valued range.
17.76
P/FCF
Elanco Animal Health Inc. (ELAN) has a current P/FCF of 17.76. The 5-year average P/FCF is 15.97. The thresholds are as follows: Strongly Undervalued below 1.19, Undervalued between 1.19 and 8.58, Fairly Valued between 23.36 and 8.58, Overvalued between 23.36 and 30.74, and Strongly Overvalued above 30.74. The current Forward P/FCF of 17.76 falls within the Historic Trend Line -Fairly Valued range.
Elanco Animal Health Inc (ELAN) has a current Price-to-Book (P/B) ratio of 1.08. Compared to its 3-year average P/B ratio of 0.96 , the current P/B ratio is approximately 11.93% higher. Relative to its 5-year average P/B ratio of 1.28, the current P/B ratio is about -15.73% higher. Elanco Animal Health Inc (ELAN) has a Forward Free Cash Flow (FCF) yield of approximately 5.07%. Compared to its 3-year average FCF yield of 4.36%, the current FCF yield is approximately 16.09% lower. Relative to its 5-year average FCF yield of 2.85% , the current FCF yield is about 77.57% lower.
1.11
P/B
Median3y
0.96
Median5y
1.28
4.97
FCF Yield
Median3y
4.36
Median5y
2.85
Competitors Valuation Multiple
The average P/S ratio for ELAN's competitors is 28.44, providing a benchmark for relative valuation. Elanco Animal Health Inc Corp (ELAN) exhibits a P/S ratio of 1.51, which is -94.68% above the industry average. Given its robust revenue growth of -1.00%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ELAN decreased by 9.05% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 2.66 to 5.62.
The secondary factor is the Revenue Growth, contributed -1.00%to the performance.
Overall, the performance of ELAN in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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