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 23.04 is considered Fairly compared with the five-year average of 19.47. The fair price of Elanco Animal Health Inc (ELAN) is between 14.48 to 24.87 according to relative valuation methord.
Relative Value
Fair Zone
14.48-24.87
Current Price：21.99
Fair
23.04
PE
1Y
3Y
5Y
Trailing
Forward
15.12
EV/EBITDA
Elanco Animal Health Inc. (ELAN) has a current EV/EBITDA of 15.12. The 5-year average EV/EBITDA is 14.34. The thresholds are as follows: Strongly Undervalued below 7.85, Undervalued between 7.85 and 11.10, Fairly Valued between 17.59 and 11.10, Overvalued between 17.59 and 20.83, and Strongly Overvalued above 20.83. The current Forward EV/EBITDA of 15.12 falls within the Historic Trend Line -Fairly Valued range.
17.75
EV/EBIT
Elanco Animal Health Inc. (ELAN) has a current EV/EBIT of 17.75. The 5-year average EV/EBIT is 16.76. The thresholds are as follows: Strongly Undervalued below 8.83, Undervalued between 8.83 and 12.80, Fairly Valued between 20.73 and 12.80, Overvalued between 20.73 and 24.70, and Strongly Overvalued above 24.70. The current Forward EV/EBIT of 17.75 falls within the Historic Trend Line -Fairly Valued range.
2.27
PS
Elanco Animal Health Inc. (ELAN) has a current PS of 2.27. The 5-year average PS is 1.97. The thresholds are as follows: Strongly Undervalued below 0.41, Undervalued between 0.41 and 1.19, Fairly Valued between 2.75 and 1.19, Overvalued between 2.75 and 3.53, and Strongly Overvalued above 3.53. The current Forward PS of 2.27 falls within the Historic Trend Line -Fairly Valued range.
26.90
P/OCF
Elanco Animal Health Inc. (ELAN) has a current P/OCF of 26.90. The 5-year average P/OCF is 17.68. The thresholds are as follows: Strongly Undervalued below -4.07, Undervalued between -4.07 and 6.81, Fairly Valued between 28.55 and 6.81, Overvalued between 28.55 and 39.43, and Strongly Overvalued above 39.43. The current Forward P/OCF of 26.90 falls within the Historic Trend Line -Fairly Valued range.
25.75
P/FCF
Elanco Animal Health Inc. (ELAN) has a current P/FCF of 25.75. The 5-year average P/FCF is 15.72. The thresholds are as follows: Strongly Undervalued below 2.20, Undervalued between 2.20 and 8.96, Fairly Valued between 22.47 and 8.96, Overvalued between 22.47 and 29.23, and Strongly Overvalued above 29.23. The current Forward P/FCF of 25.75 falls within the Overvalued range.
Elanco Animal Health Inc (ELAN) has a current Price-to-Book (P/B) ratio of 1.62. Compared to its 3-year average P/B ratio of 1.02 , the current P/B ratio is approximately 58.77% higher. Relative to its 5-year average P/B ratio of 1.26, the current P/B ratio is about 28.14% higher. Elanco Animal Health Inc (ELAN) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.98%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.02% , the current FCF yield is about -100.00% lower.
1.62
P/B
Median3y
1.02
Median5y
1.26
3.34
FCF Yield
Median3y
3.98
Median5y
3.02
Competitors Valuation Multiple
The average P/S ratio for ELAN's competitors is , providing a benchmark for relative valuation. Elanco Animal Health Inc Corp (ELAN) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 10.39%, 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 increased by 81.59% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 111.05 to 310.55.
The secondary factor is the Revenue Growth, contributed 10.39%to the performance.
Overall, the performance of ELAN in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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