ELAN Valuation

Elanco Animal Health Inc

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21.490

-0.03(-0.139%)1D

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 22.68 is considered Fairly compared with the five-year average of 19.72. The fair price of Elanco Animal Health Inc (ELAN) is between 13.66 to 24.32 according to relative valuation methord.

Relative Value

Fair Zone

13.66-24.32

Current Price：20.97

Fair

22.68

Trailing

Forward

15.62

EV/EBITDA

Elanco Animal Health Inc. (ELAN) has a current EV/EBITDA of 15.62. The 5-year average EV/EBITDA is 14.45. The thresholds are as follows: Strongly Undervalued below 7.61, Undervalued between 7.61 and 11.03, Fairly Valued between 17.87 and 11.03, Overvalued between 17.87 and 21.28, and Strongly Overvalued above 21.28. The current Forward EV/EBITDA of 15.62 falls within the Historic Trend Line -Fairly Valued range.

18.04

EV/EBIT

Elanco Animal Health Inc. (ELAN) has a current EV/EBIT of 18.04. The 5-year average EV/EBIT is 16.90. The thresholds are as follows: Strongly Undervalued below 8.50, Undervalued between 8.50 and 12.70, Fairly Valued between 21.10 and 12.70, Overvalued between 21.10 and 25.29, and Strongly Overvalued above 25.29. The current Forward EV/EBIT of 18.04 falls within the Historic Trend Line -Fairly Valued range.

21.52

Elanco Animal Health Inc. (ELAN) has a current PS of 21.52. The 5-year average PS is 2.11. The thresholds are as follows: Strongly Undervalued below -1.51, Undervalued between -1.51 and 0.30, Fairly Valued between 3.92 and 0.30, Overvalued between 3.92 and 5.73, and Strongly Overvalued above 5.73. The current Forward PS of 21.52 falls within the Strongly Overvalued range.

30.57

P/OCF

Elanco Animal Health Inc. (ELAN) has a current P/OCF of 30.57. The 5-year average P/OCF is 18.40. The thresholds are as follows: Strongly Undervalued below -8.39, Undervalued between -8.39 and 5.00, Fairly Valued between 31.80 and 5.00, Overvalued between 31.80 and 45.19, and Strongly Overvalued above 45.19. The current Forward P/OCF of 30.57 falls within the Historic Trend Line -Fairly Valued range.

28.55

P/FCF

Elanco Animal Health Inc. (ELAN) has a current P/FCF of 28.55. The 5-year average P/FCF is 15.71. The thresholds are as follows: Strongly Undervalued below 1.70, Undervalued between 1.70 and 8.70, Fairly Valued between 22.72 and 8.70, Overvalued between 22.72 and 29.72, and Strongly Overvalued above 29.72. The current Forward P/FCF of 28.55 falls within the Overvalued range.

Elanco Animal Health Inc (ELAN) has a current Price-to-Book (P/B) ratio of 1.58. Compared to its 3-year average P/B ratio of 1.00 , the current P/B ratio is approximately 58.36% higher. Relative to its 5-year average P/B ratio of 1.26, the current P/B ratio is about 25.29% higher. Elanco Animal Health Inc (ELAN) has a Forward Free Cash Flow (FCF) yield of approximately 0.03%. Compared to its 3-year average FCF yield of 4.10%, the current FCF yield is approximately -99.16% lower. Relative to its 5-year average FCF yield of 2.97% , the current FCF yield is about -98.84% lower.

1.58

P/B

Median3y

1.00

Median5y

1.26

0.03

FCF Yield

Median3y

4.10

Median5y

2.97

Competitors Valuation Multiple

The average P/S ratio for ELAN's competitors is 47.88, providing a benchmark for relative valuation. Elanco Animal Health Inc Corp (ELAN) exhibits a P/S ratio of 21.49, which is -55.11% 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

ELAN.N

Elanco Animal Health Inc

BioMarin Pharmaceutical Inc

Avidity Biosciences Inc

Performance Decomposition

Market capitalization of ELAN increased by 62.68% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 116.39 to 303.49.

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.

10.39%

1.03B → 1.14B

Revenue Growth

-108.46%

35.34 → -2.99

Margin Expansion

160.75%

116.39 → 303.49

P/E Change

62.68%