We’ve recently updated our valuation analysis.

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

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

UNH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA17.6x
PEG Ratio2.3x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.6x
ELV Elevance Health
19.7x11.7%US$122.5b
HUM Humana
24.1x12.8%US$67.6b
CNC Centene
23.9x18.1%US$48.1b
MOH Molina Healthcare
22.7x13.7%US$19.1b
UNH UnitedHealth Group
25.6x11.3%US$497.3b

Price-To-Earnings vs Peers: UNH is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the peer average (22.6x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.0%
n/an/an/a

Price-To-Earnings vs Industry: UNH is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the US Healthcare industry average (20.3x)


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 Ratio25.6x
Fair PE Ratio39.7x

Price-To-Earnings vs Fair Ratio: UNH is good value based on its Price-To-Earnings Ratio (25.6x) compared to the estimated Fair Price-To-Earnings Ratio (39.7x).


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.

Below Fair Value: UNH ($532.27) is trading below our estimate of fair value ($801.92)

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


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$532.27
US$579.96
+9.0%
8.5%US$635.00US$426.00n/a24
Nov ’23US$547.31
US$579.33
+5.9%
8.5%US$635.00US$426.00n/a24
Oct ’23US$505.04
US$574.42
+13.7%
9.2%US$635.00US$402.00n/a24
Sep ’23US$524.00
US$573.08
+9.4%
9.1%US$632.00US$402.00n/a24
Aug ’23US$535.38
US$572.72
+7.0%
9.0%US$632.00US$402.00n/a25
Jul ’23US$517.40
US$566.83
+9.6%
8.9%US$632.00US$402.00n/a24
Jun ’23US$492.55
US$568.87
+15.5%
9.1%US$632.00US$402.00n/a23
May ’23US$508.55
US$570.86
+12.3%
9.1%US$632.00US$402.00n/a22
Apr ’23US$512.59
US$527.53
+2.9%
8.9%US$575.00US$382.00n/a24
Mar ’23US$476.25
US$524.61
+10.2%
8.9%US$575.00US$382.00n/a24
Feb ’23US$468.41
US$526.47
+12.4%
8.8%US$575.00US$382.00n/a25
Jan ’23US$502.14
US$489.79
-2.5%
8.7%US$570.00US$350.00n/a26
Dec ’22US$444.34
US$480.62
+8.2%
7.5%US$526.00US$350.00n/a25
Nov ’22US$454.11
US$471.90
+3.9%
7.4%US$522.00US$350.00US$547.3126
Oct ’22US$392.43
US$459.76
+17.2%
8.3%US$522.00US$350.00US$505.0425
Sep ’22US$417.35
US$456.25
+9.3%
8.7%US$522.00US$350.00US$524.0024
Aug ’22US$412.22
US$456.33
+10.7%
9.5%US$522.00US$329.00US$535.3824
Jul ’22US$404.89
US$440.09
+8.7%
9.2%US$522.00US$329.00US$517.4023
Jun ’22US$406.72
US$434.50
+6.8%
9.9%US$522.00US$329.00US$492.5524
May ’22US$398.80
US$425.13
+6.6%
8.8%US$515.00US$329.00US$508.5523
Apr ’22US$367.07
US$397.26
+8.2%
7.2%US$462.00US$329.00US$512.5923
Mar ’22US$334.65
US$396.74
+18.6%
7.2%US$462.00US$329.00US$476.2523
Feb ’22US$334.00
US$396.30
+18.7%
7.2%US$462.00US$329.00US$468.4123
Jan ’22US$350.68
US$386.12
+10.1%
7.2%US$462.00US$329.00US$502.1425
Dec ’21US$341.19
US$371.72
+8.9%
6.2%US$409.00US$329.00US$444.3425
Nov ’21US$305.14
US$361.52
+18.5%
6.5%US$409.00US$304.00US$454.1125

Analyst Forecast: Target price is less than 20% higher than the current share price.


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