Elanco Animal Valuation
| ELAN Stock | USD 13.36 0.04 0.30% |
At this time, the firm appears to be fairly valued. Elanco Animal Health shows a prevailing Real Value of $13.72 per share. The current price of the firm is $13.36. Our model computes the value of Elanco Animal Health from reviewing the firm fundamentals such as insignificant Operating Margin, current valuation of 10.47 B, and Profit Margin of 0.05 % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Elanco Animal's valuation include:
Price Book 1.0125 | Enterprise Value 10.5 B | Enterprise Value Ebitda 7.8321 | Price Sales 1.4828 | Forward PE 13.0378 |
Fairly Valued
Today
Please note that Elanco Animal's price fluctuation is not too volatile at this time. Calculation of the real value of Elanco Animal Health is based on 3 months time horizon. Increasing Elanco Animal's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Elanco Animal is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Elanco Stock. However, Elanco Animal's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 13.36 | Real 13.72 | Target 13.81 | Hype 13.33 | Naive 12.49 |
The intrinsic value of Elanco Animal's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Elanco Animal's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Elanco Animal Health helps investors to forecast how Elanco stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Elanco Animal more accurately as focusing exclusively on Elanco Animal's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Elanco Animal's intrinsic value based on its ongoing forecasts of Elanco Animal's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Elanco Animal's closest peers.
Elanco Animal Cash |
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Elanco Valuation Trend
Knowing Elanco Animal's actual value is paramount for traders when making sound investment determinations. Using both Elanco Animal's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Elanco Valuation Data Drivers
Elanco Revenue by Product
Elanco Animal Total Value Analysis
Elanco Animal Health is currently forecasted to have valuation of 10.47 B with market capitalization of 6.6 B, debt of 5.77 B, and cash on hands of 463 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Elanco Animal fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
10.47 B | 6.6 B | 5.77 B | 463 M |
Elanco Animal Investor Information
About 99.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.01. Some equities with similar Price to Book (P/B) outperform the market in the long run. Elanco Animal Health has Price/Earnings To Growth (PEG) ratio of 1.84. The entity had not issued any dividends in recent years. Based on the analysis of Elanco Animal's profitability, liquidity, and operating efficiency, Elanco Animal Health may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0542 | 0.0738 |
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| Operating Income | 265.2 M | 326 M |
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Elanco Animal Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Elanco Animal has an asset utilization ratio of 30.75 percent. This suggests that the Company is making $0.31 for each dollar of assets. An increasing asset utilization means that Elanco Animal Health is more efficient with each dollar of assets it utilizes for everyday operations.Elanco Animal Ownership Allocation
Elanco Animal holds a total of 494.35 Million outstanding shares. The majority of Elanco Animal Health outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Elanco Animal Health to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Elanco Animal. Please pay attention to any change in the institutional holdings of Elanco Animal Health as this could imply that something significant has changed or is about to change at the company. On October 8, 2024, Representative Ro Khanna of US Congress acquired under $15k worth of Elanco Animal Health's common stock.Elanco Animal Profitability Analysis
The company reported the previous year's revenue of 4.42 B. Net Loss for the year was (1.23 B) with profit before overhead, payroll, taxes, and interest of 2.5 B.About Elanco Animal Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Elanco Animal Health. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Elanco Animal Health based exclusively on its fundamental and basic technical indicators. By analyzing Elanco Animal's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Elanco Animal's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Elanco Animal. We calculate exposure to Elanco Animal's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Elanco Animal's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.5 B | 2 B | |
| Pretax Profit Margin | (0.27) | (0.26) | |
| Operating Profit Margin | 0.07 | 0.05 | |
| Net Loss | (0.28) | (0.26) | |
| Gross Profit Margin | 0.56 | 0.42 |
Elanco Animal Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 492.3 M | |
| Quarterly Earnings Growth Y O Y | -0.714 | |
| Forward Price Earnings | 13.0378 |
Elanco Animal Current Valuation Indicators
Elanco Animal's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Elanco Animal's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Elanco Animal, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Elanco Animal's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Elanco Animal's worth.When determining whether Elanco Animal Health offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Elanco Animal's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Elanco Animal Health Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Elanco Animal Health Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Elanco Animal Health. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Elanco Animal. If investors know Elanco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Elanco Animal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.71) | Earnings Share 0.41 | Revenue Per Share 9.023 | Quarterly Revenue Growth (0.04) | Return On Assets 0.0118 |
The market value of Elanco Animal Health is measured differently than its book value, which is the value of Elanco that is recorded on the company's balance sheet. Investors also form their own opinion of Elanco Animal's value that differs from its market value or its book value, called intrinsic value, which is Elanco Animal's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Elanco Animal's market value can be influenced by many factors that don't directly affect Elanco Animal's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Elanco Animal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Elanco Animal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Elanco Animal's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.