Elanco Animal Health (ELAN) Fair Value & Analysis
Healthcare · US · Market cap $12.4B · ISIN US28414H1032
What is Elanco Animal Health really worth?
Elanco Animal Health
ELAN · US
Below-average quality, and trading another 27% above our fair value of $19.17.
Strengths
Risks
Fair value as of: Aug 13, 2026
From 12 valuation models · updated 22 days ago
Share price −4.6% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
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 Aug 13, 2026.
How to read this chart
60‑month range $8.08 – $36.72 · fair‑value band $12.64 – $19.17 · the $24.42 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 Aug 13, 2026.
Analysis
Elanco Animal Health (ELAN) currently trades at $24.42, while our model-based Fair Value estimate is $19.17, implying the stock looks roughly 27.4% overvalued today. The Quality Score stands at 45/100 (below-average quality), in the Healthcare sector. Bull case: the Asset-Based group reads highest at a median of $8.78 per share, and 0 of the 10 models we run sit above the $24.42 price. Bear case: the DCF Models group reads lowest at $1.99, and 10 of the 10 models stay below the price. Evidence for this calculation is medium.
Over the trailing twelve months, Elanco Animal Health 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 Aug 13, 2026
Our scenario range runs from $12.64 (bear case) to $19.17 (bull case); at $24.42, 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 12% below its 52-week high and 86% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −45% fair-value upside, at −22%, 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, family-balanced 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. Every input is real reported data, nothing guessed.
All 12 models by family
Widest divergence: Asset-Based ($8.78) versus Growth DCF ($0.5600). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 43 · Market factors (momentum, volatility) 53
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.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
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 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 27% overvalued. Compare with Merck KGaA →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Elanco Scales Biologics Capabilities With Expansion of Kansas Manufacturing Facility
- Director's Confidence Visible as Elanco Leader Buys 10,000 Shares
- 5 Must-Read Analyst Questions From Elanco’s Q2 Earnings Call
- Elanco (ELAN) Q2 2026 Earnings Call Transcript
Peer Group
Drug Manufacturers - Specialty & Generic · 608 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
Strength profile in five axes (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.
Similar stocks
10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Merck KGaA MRK | €140.25 | €106.48 | −24% |
| Takeda Pharmaceutical Company TAK | $18.03 | $11.11 | −38% |
| Jiangsu Hengrui Pharmaceuticals Co 600276 | ¥53.76 | ¥25.94 | −52% |
| Sun Pharmaceutical Industries Limited SUNPHARMA | ₹1,944 | ₹989.50 | −49% |
| Galderma Group GALD | CHF 178.55 | CHF 55.07 | −69% |
| Haleon plc HLN | $10.11 | $7.64 | −24% |
| Teva Pharmaceutical Industries Limited TEVA | $36.05 | $15.33 | −57% |
| Sandoz Group SDZ | CHF 70.66 | CHF 39.21 | −45% |
| Zoetis Inc ZTS | $77.10 | $104.88 | +36% |
| Hansoh Pharmaceutical Group 3692 | HK$35.12 | HK$16.18 | −54% |
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