United Therapeutics Corporation

NasdaqGS:UTHR Stock Report

Mkt Cap: US$9.7b

We’ve recently updated our valuation analysis.

United Therapeutics Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 UTHR?

Other financial metrics that can be useful for relative valuation.

UTHR 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/Revenue3x
Enterprise Value/EBITDA5.7x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for UTHR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average71x
NBIX Neurocrine Biosciences
139.1x37.3%US$8.9b
INCY Incyte
43x32.5%US$14.0b
EXEL Exelixis
40.5x29.0%US$6.2b
HZNP Horizon Therapeutics
61.2x23.2%US$22.8b
UTHR United Therapeutics
13.3x16.4%US$9.7b

Price-To-Earnings vs Peers: UTHR is good value based on its Price-To-Earnings Ratio (13.3x) compared to the peer average (71x).


Price to Earnings Ratio vs Industry

How does UTHR's PE Ratio compare vs other companies in the US Biotechs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: UTHR is expensive based on its Price-To-Earnings Ratio (13.3x) compared to the US Biotechs industry average (11.2x)


Price to Earnings Ratio vs Fair Ratio

What is UTHR'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.

UTHR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.3x
Fair PE Ratio20.2x

Price-To-Earnings vs Fair Ratio: UTHR is good value based on its Price-To-Earnings Ratio (13.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.2x).


Share Price vs Fair Value

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

Below Fair Value: UTHR ($207.32) is trading below our estimate of fair value ($509.17)

Significantly Below Fair Value: UTHR 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 UTHR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$207.32
US$275.15
+32.7%
19.3%US$375.00US$160.00n/a13
May ’24US$232.11
US$278.92
+20.2%
19.7%US$375.00US$150.00n/a13
Apr ’24US$223.96
US$281.62
+25.7%
19.7%US$375.00US$150.00n/a13
Mar ’24US$244.89
US$281.85
+15.1%
19.7%US$375.00US$150.00n/a13
Feb ’24US$259.99
US$279.92
+7.7%
19.9%US$375.00US$150.00n/a13
Jan ’24US$278.09
US$278.00
-0.03%
19.7%US$375.00US$150.00n/a13
Dec ’23US$275.61
US$277.82
+0.8%
20.0%US$375.00US$150.00n/a11
Nov ’23US$228.39
US$248.73
+8.9%
17.3%US$325.00US$142.00n/a11
Oct ’23US$209.38
US$245.00
+17.0%
17.6%US$325.00US$142.00n/a10
Sep ’23US$226.07
US$246.30
+8.9%
17.7%US$325.00US$142.00n/a10
Aug ’23US$225.30
US$240.10
+6.6%
16.3%US$300.00US$140.00n/a10
Jul ’23US$238.00
US$238.60
+0.3%
16.5%US$300.00US$140.00n/a10
Jun ’23US$231.29
US$238.60
+3.2%
16.5%US$300.00US$140.00n/a10
May ’23US$177.56
US$221.20
+24.6%
15.7%US$275.00US$135.00US$232.1110
Apr ’23US$184.65
US$221.90
+20.2%
15.7%US$275.00US$135.00US$223.9610
Mar ’23US$166.16
US$221.90
+33.5%
15.7%US$275.00US$135.00US$244.8910
Feb ’23US$202.97
US$232.60
+14.6%
16.2%US$276.00US$135.00US$259.9910
Jan ’23US$216.08
US$235.33
+8.9%
16.5%US$276.00US$135.00US$278.099
Dec ’22US$189.14
US$235.33
+24.4%
16.5%US$276.00US$135.00US$275.619
Nov ’22US$193.76
US$231.89
+19.7%
17.4%US$276.00US$130.00US$228.399
Oct ’22US$185.90
US$231.89
+24.7%
17.4%US$276.00US$130.00US$209.389
Sep ’22US$212.76
US$221.70
+4.2%
22.1%US$276.00US$130.00US$226.0710
Aug ’22US$181.93
US$214.20
+17.7%
23.7%US$276.00US$122.00US$225.3010
Jul ’22US$184.67
US$214.20
+16.0%
23.7%US$276.00US$122.00US$238.0010
Jun ’22US$177.82
US$214.20
+20.5%
23.7%US$276.00US$122.00US$231.2910
May ’22US$201.56
US$206.10
+2.3%
25.1%US$276.00US$116.00US$177.5610

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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