Is Elevance Health, Inc. overvalued or undervalued?

As of 31 July 2025, the valuation grade for Elevance Health, Inc. has moved from very expensive to expensive, indicating a slight improvement but still suggesting that the stock is not attractively priced. Based on the current metrics, Elevance Health appears to be overvalued. The P/E ratio stands at 15, while its peers, such as UnitedHealth Group, Inc. and The Cigna Group, have P/E ratios of 13.13 and 15.76, respectively, indicating that Elevance Health's valuation is higher than some of its competitors. Additionally, the EV to EBITDA ratio is notably high at 59.39, further supporting the overvaluation thesis.
In terms of recent performance, Elevance Health has underperformed compared to the S&P 500, with a year-to-date return of -14.40% versus the S&P 500's 12.22%. This trend continues over longer periods, with a 1-year return of -41.47% compared to the S&P 500's 17.14%, and a 3-year return of -34.25% against the S&P 500's 70.41%. These figures reinforce the notion that Elevance Health is currently overvalued in the market.