A Financial Analysis and Valuation of Elevance Health, Inc.

Abstract

After the pandemic, the treatment of COVID19 and the response of “Long COVID” have brought more attention to the healthcare industry. Elevance Health, Inc. (ELV) is a United States company in the healthcare industry that provides services including insurance and managed care services. In this paper, ELV is studied using financial reports as of 31 December 2022, and information on competitors in the same industry. The company is first introduced in terms of its company profile, including its business content, strategy, and recent situation. Secondly, the accounting methods of its accounting policies for revenue recognition, medical claims payable, and intangible assets and goodwill are examined. Thereafter, based on relevant financial indicators, three companies of similar market capitalization in the same industry, CVS Health Corporation, Pfizer Inc. and McKesson Corporation, are selected for comparative analyses in four aspects: liquidity, solvency, profitability and market performance. Finally, a strategy and strengths analysis and risk prediction are conducted, and a recommendation is made on whether to buy or not to buy the company's stock.