Elanco Animal Health (ELAN) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Elanco Animal Health stock $4.91, price $25.74, that is 80.9% below the price, quality 43 out of 100. Rating: strongly overvalued. Calculated from audited financials with 11 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range $8.08 – $35.36 · fair‑value band $1.99 – $8.74 · the $25.74 price screens above the $4.91 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals worldwide.
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The company offers pet health products, such as parasiticides, vaccines, and therapeutics that protect pets from fleas, ticks, and internal parasites under the Seresto, K-9 Advantage, Advantix, and Advocate trademarks; prescription parasiticide products, an over-the-counter treatments for the prevention and elimination of fleas and ticks under the Credelio Family, Interceptor Plus, Drontal family, and Drontal Plus; vaccines portfolio that provides differentiated prevention coverage for a number of important pet health risks; and therapeutics portfolio for the treatment of pain, otitis, cardiovascular, and dermatology indications, as well as osteoarthritis for dogs and cats under the Galliprant trademark.
It also provides farm animal products that help farmers improve animal health and wellbeing, and raise livestock, such as cattle, swine, and poultry.
In addition, the company offers medicated feed additives, injectable antibiotics, vaccines, insecticides and enzymes, and others under the Rumensin, Baytril, and Experior trademarks for cattle; and under the Maxiban and Monteban trademarks for the control and prevention of intestinal disease in poultry.
Further, it offers other pet health products for cats and dogs under the Atopica, Milbemax, Onsior, and Tru Family trademarks; and other farm animal products for poultry, cattle, and swine under the AviPro, Catosal, Denagard, Hemicell, Pulmotil, and Surmax tradmarks.
The company sells its products to third-party distributors and independent retailers; and directly to farm animal producers and veterinarians. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Indianapolis, Indiana.
Stock analysis
Elanco Animal Health (ELAN) currently trades at $25.74, while our model-based Fair Value estimate is $4.91, 81% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $10.40 per share, and 0 of the 10 models we run sit above the $25.74 price.
Bear case: the Growth DCF group reads lowest at $3.25, and 10 of the 10 models stay below the price. Data coverage for this calculation is low.
Scenario range: $1.99 (bear) to $8.74 (bull), the price of $25.74 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 43/100 (below-average quality), in the Healthcare sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Elanco Animal Health reported revenue of $4.7B in FY2025 versus $4.8B in FY2021, a compound −0.3%/yr. Reported net income was −$232M in FY2025.
Key figures
Market cap $13.0B Large · P/S ratio 2.56 · EPS (TTM) $−0.4100 · Net margin −4.0% · Return on equity −3.0% · Return on assets (EBIT) 2.1% (5-year average) · Operating margin 8.6% · Revenue (TTM) $5.0B.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 22 out of 100 (low confidence).
What moves the price
The share trades about 4% below its 52-week high and 30% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −27% fair-value upside, at −81%, ELAN screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely ($1.56 to $19.17). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear$1.99Fair Value $4.91Bull$8.74
Price $25.74 · Downside -80.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 7 officers or directors bought shares worth $1.7M, most recently on Aug 20, 2026. Over the same period, one person sold shares worth $100,050. Buying cluster
SaleTimothy J BettingtonOfficer4,350 shares at $23.00$100,050Oct 15, 202610b5-1 plan
BuyLawrence Erik KurziusDirector2× since Dec 12, 2025: 50,000 shares, avg. $22.98$1.1MAug 20, 2026
BuyShiv O'NeillGC AND CORP SEC3,998 shares at $23.58$94,273Aug 18, 2026
BuyMichael J HarringtonDirector5,000 shares at $21.82$109,100Aug 12, 2026
BuyPaul HerendeenDirector10,000 shares at $23.69$236,900Aug 7, 2026
BuyRobert M VanHimbergenEVP and CFO2× since Dec 11, 2025: 11,150 shares, avg. $22.18$247,334Aug 7, 2026
BuyJeffrey N SimmonsPRESIDENT, CEO AND DIRECTOR, Director2× since Dec 11, 2025: 26,971 shares, avg. $21.44$578,367May 15, 2026
BuyRajeev A. ModiOfficer2× since Dec 11, 2025: 9,411 shares, avg. $20.82$195,924May 15, 2026
Plus 11 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.47/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+6.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.6%
Start year 2020 (pandemic). Over 10 years: +4.9% a year
Revenue growth 10 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.9%
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Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−2.3% (2020) → 5.3% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+33.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +30.4% a year for the price and +3.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (95 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Elanco benefits from expanded biologics capacity and surging demand for its new dermatology treatment, but persistent losses, negative returns on equity and elevated debt constrain business quality.
Main risk: Generic manufacturers and larger rivals such as Zoetis could introduce cheaper alternatives to Elanco's flea and tick products like Advantix and other parasiticides, eroding prices and margins in the companion animal segment.
Bull case: Elanco could leverage its monoclonal antibody platform and AI-driven diagnostics to differentiate new pet treatments and capture share from generics through superior efficacy data.
Bear case: Sustained generic entry and pricing pressure from Zoetis combined with regulatory constraints on promotions could compress margins on core parasiticides and limit growth from the Kansas biologics expansion.
Elanco just completed a fourfold expansion of its Kansas biologics plant to scale monoclonal antibody output for pets. Demand for its new dermatology treatment already runs twice as high as planned. Will the added capacity convert that momentum into durable earnings growth or mainly raise the fixed cost base in a business our models still see as overvalued?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Drug Manufacturers - Specialty & Generic · 549 stocks
Beats the industry median on 1/11 measures
Overall it trails its industry peers.
Valuation
Quality Score43 · Bottom 25%
Fair Value upside−80.9% · Bottom 25%
Profitability
Return on assets−1.7% · Bottom 25%
Net margin (12 months)−4.0% · Bottom 25%
Operating margin (12 months)8.6% · Below median
Growth and dividend
Revenue growth (quarter YoY)10.2% · Above median
Balance sheet
Debt / equity0.60× · Highest 25%
Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper
P/B1.99× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Elanco Animal Health Fair Value". https://www.fairvalue-calculator.com/stock/ELAN
Frequently asked questions
Is Elanco Animal Health (ELAN) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of $4.91 versus a price of $25.74, about 81% lower (overvalued).
What is the fair value of ELAN?
Our model-based fair value for Elanco Animal Health is $4.91 (as of Nov 7, 2026), built from audited fundamentals. The current price: $25.74.
What is the quality score of ELAN?
Elanco Animal Health has a Quality Score of 43/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Elanco Animal Health (ELAN)?
Our model-based price target is the fair value of $4.91 (as of Nov 7, 2026) from 11 valuation models. Cautious scenario $1.99, optimistic scenario $8.74. It is a calculation from audited fundamentals, not an analyst target.
What is the Elanco Animal Health stock forecast for 2026?
Our models put fair value at $4.91, about 81% lower versus a price of $25.74 (overvalued). Cautious scenario $1.99, optimistic scenario $8.74. The calculation is refreshed regularly with new filings.
What is the revenue of Elanco Animal Health (ELAN)?
Elanco Animal Health reported trailing-twelve-month revenue of about $5.0B (latest available figure, as of Nov 7, 2026).
What growth is priced into Elanco Animal Health (ELAN)?
For today's price to be fair in a discounted-cash-flow model, Elanco Animal Health would have to grow free cash flow by +33.5 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.6 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of ELAN use?
Our models discount Elanco Animal Health at 10.9 %: a base by market capitalisation (large), damped by beta 1.72, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Elanco Animal Health that is +33.5 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has Elanco Animal Health (ELAN) delivered so far?
Over the past 5 years revenue at Elanco Animal Health grew +7.6 % a year. The price currently implies free-cash-flow growth of +33.5 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Elanco Animal Health (ELAN) growing?
The median revenue growth in the sector is +6.2 % a year. That is the yardstick for the growth priced into Elanco Animal Health (+33.5 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Elanco Animal Health (ELAN)?
The free-cash-flow yield on the price is 2.18 %: that much free cash flow Elanco Animal Health produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Elanco Animal Health (ELAN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Elanco Animal Health it is $4.91 per share (as of Nov 7, 2026), against a price of $25.74. It is the blended result of 11 valuation models in 3 families (DCF Models, Multiples, Growth DCF).
Is Elanco Animal Health stock overvalued or undervalued in 2026?
As of Nov 7, 2026, ELAN trades above its calculated fair value: price $25.74, fair value $4.91, a gap of about −81% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ELAN?
No. The price is what the market pays today ($25.74); the fair value is what the company's own numbers justify ($4.91). For Elanco Animal Health the two are $20.83 per share apart. That gap is exactly why we show both numbers side by side.
How much is Elanco Animal Health worth?
The market values Elanco Animal Health at about $13.0B (market capitalisation, as of Nov 7, 2026). Per share that is $25.74; our models calculate a fair value of $4.91 per share.
What do the bullish and bearish scenarios say about ELAN?
Our models span a range for Elanco Animal Health: cautious scenario $1.99, base $4.91, optimistic $8.74 per share (as of Nov 7, 2026, price $25.74). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the PEG ratio of ELAN?
The PEG ratio of Elanco Animal Health is 8.94 (P/E divided by earnings growth, as of Nov 7, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Elanco Animal Health (ELAN)?
Balance-sheet figures for Elanco Animal Health (as of Nov 7, 2026): return on equity −3.0%, debt of 0.60 per unit of equity. They feed the Quality Score of 43/100, which measures business quality independently of the share price.
How far is ELAN from its 52-week high?
Elanco Animal Health trades at $25.74, about 4% below its 52-week high of $26.84 and 30% above the low of $19.80 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $4.91 is for.
Which stocks are comparable to Elanco Animal Health?
From the same area (Healthcare) we also value Merck KGaA, Takeda Pharmaceutical Company, Galderma Group, Teva Pharmaceutical Industries Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Elanco Animal Health stock attractive at the current price?
The data as of Nov 7, 2026: price $25.74, calculated fair value $4.91 (−81%), Quality Score 43/100, from 11 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ELAN calculated?
We run Elanco Animal Health through 11 models from 3 families: DCF Models, Multiples, Growth DCF. Every model gets the same audited fundamentals; the fair value of $4.91 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Elanco Animal Health itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Elanco Animal Health (ELAN)?
The closing price on Nov 6, 2026 was $25.74. Our model-based fair value is $4.91, about 81% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Elanco Animal Health right now?
The price sits above even our optimistic bull case ($8.74). The favourable scenario is already priced in. Weak quality (43/100) and above fair value at the same time, the margin of safety is missing on both counts. The model range is unusually wide ($1.99 to $8.74). The outcome hinges heavily on assumptions, so read the point estimate with caution. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
Key figures of Elanco Animal Health
How large is the market capitalisation of Elanco Animal Health (ELAN)?
The market capitalisation of Elanco Animal Health is $13.0B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Elanco Animal Health (ELAN)?
The price-to-sales ratio of Elanco Animal Health is 2.56 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Elanco Animal Health (ELAN)?
Earnings per share at Elanco Animal Health are $−0.4100. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Elanco Animal Health (ELAN)?
The net margin of Elanco Animal Health is −4.0% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Elanco Animal Health (ELAN)?
The return on equity (ROE) of Elanco Animal Health is −3.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Elanco Animal Health (ELAN)?
On an EBIT basis the return on assets of Elanco Animal Health is 2.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Elanco Animal Health (ELAN)?
The operating margin of Elanco Animal Health is 8.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Elanco Animal Health (ELAN)?
Revenue at Elanco Animal Health is growing +10.2% versus a year earlier (3y avg +2.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Elanco Animal Health (ELAN)?
Earnings per share at Elanco Animal Health are growing +441% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Elanco Animal Health (ELAN) carry?
The net debt of Elanco Animal Health is $3.5B (fiscal year 2025, ≈ 12.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Thin data
Nov 7, 2026
