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DCF valuation

What is Elanco Animal Health Inc worth?

With the base-case assumptions below, a discounted cash flow model on Elanco Animal Health Inc's reported free cash flow gives $5.81 per share. The share price was $22.31 on September 25, 2026, 284% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$284M
Average free cash flow, last 5 years
$282.8M
Cash
$530M
balance sheet of June 30, 2026
Debt
$3.66B
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
496,400,000
Revenue growth per year, last 5 years
7.6%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear2.5%2.5%2.0%10.0%$1.25-94%
Base7.5%5.0%2.5%9.0%$5.81-74%
Bull12.5%8.0%3.0%8.0%$14.89-33%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$9.19$10.23$11.50$13.08$15.12
8.0%$6.66$7.33$8.13$9.08$10.25
9.0%$4.82$5.27$5.81$6.42$7.16
10.0%$3.41$3.74$4.11$4.53$5.02
11.0%$2.30$2.54$2.81$3.11$3.45

Where the presets come from

Base: years 1 to 5 grow at Elanco Animal Health Inc's revenue growth rate over the last 5 fiscal years (7.6% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Elanco Animal Health Inc company page