UnitedHealth Group Incorporated

SNSE:UNH Stock Report

Market Cap: US$485.0b

UnitedHealth Group Valuation

Is UNH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of UNH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$1.10k
Fair Value
55.6% undervalued intrinsic discount
26
Number of Analysts

Below Fair Value: UNH ($487.16) is trading below our estimate of fair value ($1096.05)

Significantly Below Fair Value: UNH is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for UNH?

Key metric: As UNH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for UNH. This is calculated by dividing UNH's market cap by their current earnings.
What is UNH's PE Ratio?
PE Ratio33.7x
EarningsUS$14.41b
Market CapUS$485.02b

Price to Earnings Ratio vs Peers

How does UNH's PE Ratio compare to its peers?

The above table shows the PE ratio for UNH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.5x
ELV Elevance Health
15.2x12.8%US$90.6b
HUM Humana
24.3x11.5%US$33.7b
CNC Centene
8.8x4.7%US$29.1b
MOH Molina Healthcare
13.5x10.8%US$16.0b
UNH UnitedHealth Group
33.7x18.8%US$485.0b

Price-To-Earnings vs Peers: UNH is expensive based on its Price-To-Earnings Ratio (33.7x) compared to the peer average (15.5x).

Price to Earnings Ratio vs Industry

How does UNH's PE Ratio compare vs other companies in the Global Healthcare Industry?

14 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UNH 33.7xIndustry Avg. 20.8xNo. of Companies69PE01632486480+
14 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: UNH is expensive based on its Price-To-Earnings Ratio (33.7x) compared to the Global Healthcare industry average (20.8x).

Price to Earnings Ratio vs Fair Ratio

What is UNH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

UNH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate UNH's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst UNH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$487.16
US$637.24
+30.8%
4.8%US$700.00US$590.00n/a26
Feb ’26US$487.16
US$637.24
+30.8%
4.8%US$700.00US$590.00n/a26
Jan ’26US$487.16
US$636.59
+30.7%
4.6%US$700.00US$587.12n/a26
Dec ’25US$487.16
US$628.35
+29.0%
5.7%US$715.00US$550.00n/a26
Nov ’25US$487.16
US$618.87
+27.0%
4.6%US$658.00US$550.00n/a26
Oct ’25US$487.16
US$622.38
+27.8%
4.8%US$680.00US$550.00n/a25
Sep ’25US$487.16
US$621.94
+27.7%
4.9%US$680.00US$550.00n/a25
Aug ’25US$487.16
US$614.72
+26.2%
5.7%US$680.00US$545.00n/a25
Jul ’25US$487.16
US$575.77
+18.2%
6.3%US$675.00US$481.00n/a28
Jun ’25US$508.96
US$571.49
+12.3%
7.4%US$675.00US$460.00n/a28
May ’25US$508.96
US$567.36
+11.5%
7.7%US$675.00US$460.00n/a27
Apr ’25US$508.96
US$589.45
+15.8%
7.5%US$675.00US$470.00n/a27
Mar ’25US$508.96
US$593.47
+16.6%
7.3%US$675.00US$470.00n/a26
Feb ’25US$508.96
US$595.09
+16.9%
7.1%US$675.00US$470.00US$487.1626
Jan ’25US$508.96
US$588.30
+15.6%
7.4%US$675.00US$480.00US$487.1623
Dec ’24US$508.96
US$587.61
+15.5%
6.2%US$660.00US$500.00US$487.1623
Nov ’24US$508.96
US$587.78
+15.5%
6.6%US$660.00US$462.00US$487.1623
Oct ’24US$508.96
US$566.88
+11.4%
6.6%US$650.00US$462.00US$487.1624
Sep ’24US$464.05
US$569.79
+22.8%
6.7%US$650.00US$462.00US$487.1624
Aug ’24US$464.05
US$567.54
+22.3%
6.8%US$650.00US$462.00US$487.1624
Jul ’24US$464.05
US$576.38
+24.2%
6.8%US$650.00US$462.00US$487.1624
Jun ’24US$464.05
US$587.00
+26.5%
6.6%US$650.00US$462.00US$508.9624
May ’24US$464.05
US$587.65
+26.6%
6.9%US$650.00US$462.00US$508.9623
Apr ’24US$464.05
US$589.35
+27.0%
6.7%US$650.00US$462.00US$508.9623
Mar ’24US$486.30
US$590.83
+21.5%
6.4%US$650.00US$462.00US$508.9623
Feb ’24US$486.30
US$591.39
+21.6%
6.3%US$650.00US$462.00US$508.9623
Analyst Price Target
Consensus Narrative from 26 Analysts
US$589.03
Fair Value
17.3% undervalued intrinsic discount
26
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/08 22:44
End of Day Share Price 2025/02/07 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

UnitedHealth Group Incorporated is covered by 57 analysts. 23 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David ToungArgus Research Company
Hua HaBaird
Joshua RaskinBarclays