NYSE
UNH
Last Price
US $415.63
KEY FIGURES
MKT CAP
$388.6B
EPS
TTM
$13.24
PEG
TTM
N/M
P/E
TTM
32.27x
P/S
TTM
0.87x
YIELD
2.09%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
12.40%
Return on equity
ROIC: 8.09%
Valuation History
32.3X
Price to Earnings
EV/EBITDA: 19.1X
Cash flow
Profit margin
11.72%
(FY vs FY)
EBITDA Y/Y
-1.83%
(FY vs FY)
Cash flow Y/Y
-4.39%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $415.63
-73.11%
Default assumptions
EBITDA Multiple
Fair Value
Market $415.63
-71.53%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
UnitedHealth Group Incorporated cash flow to debt ratio of 25.13% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial risk - Healthy cash flow growth.
UnitedHealth Group Incorporated's free cash flow has decreased -22.36% from $20.70G last year to $16.07G, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
UnitedHealth Group Incorporated's debt to equity ratio is 0.75, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
UnitedHealth Group Incorporated's debt has decreased relative to shareholder equity from 0.83 last year to 0.75 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
UnitedHealth Group Incorporated has a net debt to EBITDA ratio of 2.34x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
UnitedHealth Group Incorporated's interest coverage ratio of 4.76 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
UnitedHealth Group Incorporated's profit margin has decreased (-25.58%) in the last year from 3.60% to 2.68%, signaling decreasing performance
Financial risk - Short term assets vs short term liabilities.
UnitedHealth Group Incorporated's short-term liabilities of $114.90G exceed its short-term assets of $90.58G, signaling financial risk
Decreasing performance - ROA.
UnitedHealth Group Incorporated's return on assets of 3.85% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
UnitedHealth Group Incorporated's return on equity of 12.40%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
UnitedHealth Group Incorporated's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
UnitedHealth Group Incorporated had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
UnitedHealth Group Incorporated has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
UnitedHealth Group Incorporated has a free cash flow yield of 4.14%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
UnitedHealth Group Incorporated's yearly earnings has decreased -16.31% since last year from $14.40G to $12.06G, signaling decreasing performance
Increasing performance - Healthy revenue growth.
UnitedHealth Group Incorporated's yearly revenue has increased 11.81% since last year from $400.28G to $447.57G, signaling increasing performance
Increasing performance - ROIC.
ROIC 8.09% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
UnitedHealth Group Incorporated's 3-year revenue CAGR of 11.35% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
UnitedHealth Group Incorporated had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
UnitedHealth Group Incorporated had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
UnitedHealth Group Incorporated is overvalued relative to its fair value price of 111.78 based on Discounted Cash Flow model
Overvalued - Earnings yield.
UnitedHealth Group Incorporated has an earnings yield of 3.09%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
UnitedHealth Group Incorporated is overvalued relative to its fair value price of 118.32 based on EBITDA multiple model
Undervalued - EV/EBITDA.
UnitedHealth Group Incorporated has an EV/EBITDA ratio of 19.08x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
UnitedHealth Group Incorporated has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
UnitedHealth Group Incorporated has a price-to-book ratio of 3.75x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
UnitedHealth Group Incorporated has a price-to-sales ratio of 0.86x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue