UNH Valuation

UnitedHealth Group Inc

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341.300

+4.61(1.369%)1D

Overview
Forecast
Valuation
Earnings

UNH Relative Valuation

UNH's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, UNH is overvalued; if below, it's undervalued.

Historical Valuation

UnitedHealth Group Inc (UNH) is now in the Fair zone, suggesting that its current forward PE ratio of 21.02 is considered Fairly compared with the five-year average of 20.62. The fair price of UnitedHealth Group Inc (UNH) is between 280.75 to 363.46 according to relative valuation methord.

Relative Value

Fair Zone

280.75-363.46

Current Price：340.69

Fair

21.02

Trailing

Forward

14.30

EV/EBITDA

UnitedHealth Group Inc. (UNH) has a current EV/EBITDA of 14.30. The 5-year average EV/EBITDA is 14.49. The thresholds are as follows: Strongly Undervalued below 10.71, Undervalued between 10.71 and 12.60, Fairly Valued between 16.38 and 12.60, Overvalued between 16.38 and 18.27, and Strongly Overvalued above 18.27. The current Forward EV/EBITDA of 14.30 falls within the Historic Trend Line -Fairly Valued range.

16.98

EV/EBIT

UnitedHealth Group Inc. (UNH) has a current EV/EBIT of 16.98. The 5-year average EV/EBIT is 16.36. The thresholds are as follows: Strongly Undervalued below 11.69, Undervalued between 11.69 and 14.03, Fairly Valued between 18.69 and 14.03, Overvalued between 18.69 and 21.02, and Strongly Overvalued above 21.02. The current Forward EV/EBIT of 16.98 falls within the Historic Trend Line -Fairly Valued range.

0.66

UnitedHealth Group Inc. (UNH) has a current PS of 0.66. The 5-year average PS is 1.21. The thresholds are as follows: Strongly Undervalued below 0.77, Undervalued between 0.77 and 0.99, Fairly Valued between 1.42 and 0.99, Overvalued between 1.42 and 1.64, and Strongly Overvalued above 1.64. The current Forward PS of 0.66 falls within the Strongly Undervalued range.

16.02

P/OCF

UnitedHealth Group Inc. (UNH) has a current P/OCF of 16.02. The 5-year average P/OCF is 17.67. The thresholds are as follows: Strongly Undervalued below 8.52, Undervalued between 8.52 and 13.10, Fairly Valued between 22.25 and 13.10, Overvalued between 22.25 and 26.82, and Strongly Overvalued above 26.82. The current Forward P/OCF of 16.02 falls within the Historic Trend Line -Fairly Valued range.

16.99

P/FCF

UnitedHealth Group Inc. (UNH) has a current P/FCF of 16.99. The 5-year average P/FCF is 18.03. The thresholds are as follows: Strongly Undervalued below 11.62, Undervalued between 11.62 and 14.83, Fairly Valued between 21.24 and 14.83, Overvalued between 21.24 and 24.45, and Strongly Overvalued above 24.45. The current Forward P/FCF of 16.99 falls within the Historic Trend Line -Fairly Valued range.

UnitedHealth Group Inc (UNH) has a current Price-to-Book (P/B) ratio of 3.22. Compared to its 3-year average P/B ratio of 5.26 , the current P/B ratio is approximately -38.84% higher. Relative to its 5-year average P/B ratio of 5.49, the current P/B ratio is about -41.38% higher. UnitedHealth Group Inc (UNH) has a Forward Free Cash Flow (FCF) yield of approximately 8.29%. Compared to its 3-year average FCF yield of 5.44%, the current FCF yield is approximately 52.28% lower. Relative to its 5-year average FCF yield of 5.35% , the current FCF yield is about 54.93% lower.

3.22

P/B

Median3y

5.26

Median5y

5.49

8.29

FCF Yield

Median3y

5.44

Median5y

5.35

Competitors Valuation Multiple

The average P/S ratio for UNH's competitors is , providing a benchmark for relative valuation. UnitedHealth Group Inc Corp (UNH) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 12.91%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

UNH.N

UnitedHealth Group Inc

Molina Healthcare Inc

Loss

15.66%

9.86B

Performance Decomposition

Market capitalization of UNH decreased by 41.19% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 98.86B to 111.62B.

The secondary factor is the P/E Change, contributed -25.69%to the performance.

Overall, the performance of UNH in the past 1 year is driven by Revenue Growth. Which is more sustainable.

12.91%

98.86B → 111.62B

Revenue Growth

-28.41%

4.47 → 3.20

Margin Expansion

-25.69%

19.87 → 14.77

P/E Change

-41.19%