UNP Relative Valuation
UNP'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, UNP is overvalued; if below, it's undervalued.
Historical Valuation
Union Pacific Corp (UNP) is now in the Undervalued zone, suggesting that its current forward PE ratio of 17.85 is considered Undervalued compared with the five-year average of 20.31. The fair price of Union Pacific Corp (UNP) is between 235.51 to 268.62 according to relative valuation methord. Compared to the current price of 219.40 USD , Union Pacific Corp is Undervalued By 6.84%.
Relative Value
Fair Zone
235.51-268.62
Current Price：219.40
6.84%
Undervalued
17.85
PE
1Y
3Y
5Y
Trailing
Forward
12.53
EV/EBITDA
Union Pacific Corp. (UNP) has a current EV/EBITDA of 12.53. The 5-year average EV/EBITDA is 13.97. The thresholds are as follows: Strongly Undervalued below 12.26, Undervalued between 12.26 and 13.11, Fairly Valued between 14.82 and 13.11, Overvalued between 14.82 and 15.67, and Strongly Overvalued above 15.67. The current Forward EV/EBITDA of 12.53 falls within the Undervalued range.
15.68
EV/EBIT
Union Pacific Corp. (UNP) has a current EV/EBIT of 15.68. The 5-year average EV/EBIT is 17.41. The thresholds are as follows: Strongly Undervalued below 15.25, Undervalued between 15.25 and 16.33, Fairly Valued between 18.50 and 16.33, Overvalued between 18.50 and 19.58, and Strongly Overvalued above 19.58. The current Forward EV/EBIT of 15.68 falls within the Undervalued range.
5.18
PS
Union Pacific Corp. (UNP) has a current PS of 5.18. The 5-year average PS is 5.89. The thresholds are as follows: Strongly Undervalued below 4.71, Undervalued between 4.71 and 5.30, Fairly Valued between 6.48 and 5.30, Overvalued between 6.48 and 7.07, and Strongly Overvalued above 7.07. The current Forward PS of 5.18 falls within the Undervalued range.
13.29
P/OCF
Union Pacific Corp. (UNP) has a current P/OCF of 13.29. The 5-year average P/OCF is 14.85. The thresholds are as follows: Strongly Undervalued below 12.32, Undervalued between 12.32 and 13.58, Fairly Valued between 16.12 and 13.58, Overvalued between 16.12 and 17.38, and Strongly Overvalued above 17.38. The current Forward P/OCF of 13.29 falls within the Undervalued range.
20.27
P/FCF
Union Pacific Corp. (UNP) has a current P/FCF of 20.27. The 5-year average P/FCF is 22.61. The thresholds are as follows: Strongly Undervalued below 17.36, Undervalued between 17.36 and 19.98, Fairly Valued between 25.23 and 19.98, Overvalued between 25.23 and 27.86, and Strongly Overvalued above 27.86. The current Forward P/FCF of 20.27 falls within the Historic Trend Line -Fairly Valued range.
Union Pacific Corp (UNP) has a current Price-to-Book (P/B) ratio of 8.00. Compared to its 3-year average P/B ratio of 9.53 , the current P/B ratio is approximately -16.04% higher. Relative to its 5-year average P/B ratio of 9.64, the current P/B ratio is about -16.96% higher. Union Pacific Corp (UNP) has a Forward Free Cash Flow (FCF) yield of approximately 4.76%. Compared to its 3-year average FCF yield of 3.96%, the current FCF yield is approximately 20.04% lower. Relative to its 5-year average FCF yield of 3.99% , the current FCF yield is about 19.12% lower.
8.00
P/B
Median3y
9.53
Median5y
9.64
4.81
FCF Yield
Median3y
3.96
Median5y
3.99
Competitors Valuation Multiple
The average P/S ratio for UNP's competitors is 4.67, providing a benchmark for relative valuation. Union Pacific Corp Corp (UNP) exhibits a P/S ratio of 5.18, which is 10.78% above the industry average. Given its robust revenue growth of 2.45%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of UNP decreased by 14.33% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 27.85 to 30.48.
The secondary factor is the Revenue Growth, contributed 2.45%to the performance.
Overall, the performance of UNP in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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