Elanco Animal Health Incorporated (ELAN) Fair Value & Analysis
Healthcare · US · Market cap $12.4B
Elanco Animal Health Incorporated
ELAN · US
Fair value as of: Jul 14, 2026
From 12 valuation models · updated 26 days ago
Share price −10.4% over the past month.
Below-average quality, and screening another 13% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case ($19.17). The favourable scenario is already priced in.
- Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.
How to read this chart
60‑month range $8.08 – $36.72 · fair‑value band $12.64 – $19.17 · the $22.12 price screens above the $19.17 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 14, 2026.
Analysis
Elanco Animal Health Incorporated (ELAN) currently trades at $22.12, while our model-based Fair Value estimate is $19.17, implying the stock looks roughly 13.3% overvalued today. The Quality Score stands at 45/100 (below-average quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).
Over the trailing twelve months, Elanco Animal Health Incorporated generated revenue of $4.9B at a net margin of -5.0%. Revenue grew 14.9% year over year. It earns a return on equity of -3.8%. Net debt stands at $3.5B. Fundamentals as of Jul 14, 2026
Our scenario range runs from $12.64 (bear case) to $19.17 (bull case); at $22.12, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 20% below its 52-week high and 68% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at -13%, ELAN screens cheaper than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 12 models by family
Widest divergence: Asset-Based ($8.78) versus Growth DCF ($0.5600). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 43 · Market factors (momentum, volatility) 52
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals worldwide.
Full company description
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals worldwide. 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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Elanco Animal Health Incorporated reported revenue of $4.7B in FY2025 versus $4.8B in FY2021, a compound −0.3%/yr. Reported net income was −$232M in FY2025.
ELAN screens 13% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Elanco Releases 2025 Impact Report, Demonstrating How Animal Health Helps Meet Society's Growing Needs
- Elanco Animal Health Incorporated (ELAN) Earnings Expected to Grow: Should You Buy?
- Elanco Seems Best-Positioned Into Q2 Print Among Animal Health Stocks, UBS Says
- Did New Tick-Data Edge for Credelio Quattro Just Shift Elanco Animal Health's (ELAN) Investment Narrative?
Peer Group
Drug Manufacturers - Specialty & Generic · 626 stocks
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.
Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Insider activity: 45/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Jiangsu Hengrui Pharmaceuticals Co 600276 | ¥53.19 | ¥25.94 | -51% |
| Sun Pharmaceutical Industries Limited SUNPHARMA | ₹1,933 | ₹989.50 | -49% |
| Divi's Laboratories Limited DIVISLAB | ₹7,316 | ₹1,943 | -73% |
| Torrent Pharmaceuticals Limited TORNTPHARM | ₹4,763 | ₹1,329 | -72% |
| PharmaEssentia Corporation 6446 | 1,285 TWD | 221.01 TWD | -83% |
| Cipla Limited CIPLA | ₹1,439 | ₹1,001 | -30% |
| Zydus Lifesciences Limited ZYDUSLIFE | ₹1,151 | ₹703.32 | -39% |
| Lupin Limited LUPIN | ₹2,443 | ₹2,477 | +1% |
| Mankind Pharma Limited MANKIND | ₹2,484 | ₹983.11 | -60% |
| Dr. Reddy's Laboratories Limited DRREDDY | ₹1,211 | ₹874.79 | -28% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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