UnitedHealth Group Incorporated

NYSE:UNH Stock Report

Market Cap: US$467.7b

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.

Below Fair Value: UNH ($508.17) is trading below our estimate of fair value ($1152.87)

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?

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/Revenue1.4x
Enterprise Value/EBITDA14.9x
PEG Ratio1.6x

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 Average18.3x
ELV Elevance Health
19.4x12.3%US$121.2b
HUM Humana
21.1x14.2%US$42.1b
CNC Centene
14.6x9.1%US$39.8b
MOH Molina Healthcare
18.2x16.1%US$19.5b
UNH UnitedHealth Group
30.4x19.6%US$467.7b

Price-To-Earnings vs Peers: UNH is expensive based on its Price-To-Earnings Ratio (30.4x) compared to the peer average (18.3x).


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/a17.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: UNH is expensive based on its Price-To-Earnings Ratio (30.4x) compared to the US Healthcare industry average (26.5x).


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 Ratio30.4x
Fair PE Ratio52.7x

Price-To-Earnings vs Fair Ratio: UNH is good value based on its Price-To-Earnings Ratio (30.4x) compared to the estimated Fair Price-To-Earnings Ratio (52.7x).


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$508.17
US$568.10
+11.8%
7.6%US$675.00US$460.00n/a27
May ’25US$484.11
US$567.36
+17.2%
7.7%US$675.00US$460.00n/a27
Apr ’25US$489.70
US$589.45
+20.4%
7.5%US$675.00US$470.00n/a27
Mar ’25US$489.53
US$593.47
+21.2%
7.3%US$675.00US$470.00n/a26
Feb ’25US$507.14
US$595.09
+17.3%
7.1%US$675.00US$470.00n/a26
Jan ’25US$526.47
US$588.30
+11.7%
7.4%US$675.00US$480.00n/a23
Dec ’24US$547.16
US$587.61
+7.4%
6.2%US$660.00US$500.00n/a23
Nov ’24US$531.60
US$587.78
+10.6%
6.6%US$660.00US$462.00n/a23
Oct ’24US$504.19
US$566.88
+12.4%
6.6%US$650.00US$462.00n/a24
Sep ’24US$476.24
US$569.79
+19.6%
6.7%US$650.00US$462.00n/a24
Aug ’24US$504.74
US$567.54
+12.4%
6.8%US$650.00US$462.00n/a24
Jul ’24US$480.64
US$576.38
+19.9%
6.8%US$650.00US$462.00n/a24
Jun ’24US$493.63
US$587.00
+18.9%
6.6%US$650.00US$462.00n/a24
May ’24US$495.70
US$587.65
+18.5%
6.9%US$650.00US$462.00US$484.1123
Apr ’24US$472.59
US$589.35
+24.7%
6.7%US$650.00US$462.00US$489.7023
Mar ’24US$475.22
US$590.83
+24.3%
6.4%US$650.00US$462.00US$489.5323
Feb ’24US$497.00
US$591.39
+19.0%
6.3%US$650.00US$462.00US$507.1423
Jan ’24US$530.18
US$587.74
+10.9%
7.8%US$650.00US$426.00US$526.4723
Dec ’23US$536.91
US$586.09
+9.2%
7.6%US$644.00US$426.00US$547.1623
Nov ’23US$547.31
US$584.83
+6.9%
7.6%US$635.00US$426.00US$531.6023
Oct ’23US$505.04
US$574.42
+13.7%
9.2%US$635.00US$402.00US$504.1924
Sep ’23US$524.00
US$573.08
+9.4%
9.1%US$632.00US$402.00US$476.2424
Aug ’23US$535.38
US$572.72
+7.0%
9.0%US$632.00US$402.00US$504.7425
Jul ’23US$517.40
US$566.83
+9.6%
8.9%US$632.00US$402.00US$480.6424
Jun ’23US$492.55
US$568.87
+15.5%
9.1%US$632.00US$402.00US$493.6323
May ’23US$508.55
US$570.86
+12.3%
9.1%US$632.00US$402.00US$495.7022

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


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