Buffett Brain · Research note
Score updated 5 Oct 2026 · analysis from 8 Sept 2026
ELV· Healthcare
Elevance Health
Elevance Health's low margins and weak moat in a competitive healthcare sector limit its appeal despite a reasonable valuation.
Buffett fit
Weak fit
Owner
18
Durability
79
Management
46
Price
61
Score updated 5 Oct 2026 · analysis from 8 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned Elevance Health entirely, the next decade would require navigating a highly competitive and regulated environment with low margins.
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Elevance Health has been profitable for the past 5 years, but its durability is threatened by regulatory changes and industry competition.
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Management has reduced the share count by 2.56% annually over 5 years, but with a yield of 2.9%, the impact on shareholder value is limited.
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The current of 14.3 and EV/ of 12.8 suggest a fair valuation, but the earnings yield of 7.0% is below our preferred threshold.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Market cap of $88.37B provides scale in the healthcare sector.
- 2Share count CAGR of -2.56% indicates consistent .
- 3Interest coverage of 5.8 shows ability to meet debt obligations.
- 4Revenue CAGR of 8.34% over 5 years indicates steady top-line growth.
Concerns
5- 1 of 3.81% is significantly below sector top-quintile.
- 2 of 8.65% (TTM) is below the 15% Buffett bar and sector top-quintile.
- 3 of 23.16% is far below the sector top-quintile of 77.9%.
- 4Net debt/EBITDA of 2.34 exceeds Buffett's comfort zone of <2x.
Price history
$386+0.1%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Elevance Health, Inc. operates as a health benefits company, offering health plans and services across various segments. It generates revenue primarily through premium income and administrative fees. The company's margins are thin, with a 3.81% , reflecting industry competition. The unit economics are challenged by the need to maintain volume to achieve profitability.
How this analysis has moved
The call has held across 2 reviews.
Sep 27, 2026 → Oct 4, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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