Union Pacific Corp. (UNP) | Valuation Ratios

Current Valuation Ratios

Union Pacific Corp., current price multiples

	Union Pacific Corp.	Industrials
Selected Financial Data
Current share price (P)	$ 157.95
No. shares of common stock outstanding	469,298,732
Growth rate (g)	11.69%

Earnings per share (EPS)	$ 8.40
Next year expected EPS	$ 9.38
Operating profit per share	$ 14.37
Sales per share	$ 44.59
Book value per share (BVPS)	$ 42.35
Ratios (Price Multiples)
Price to earnings (P/E)	18.80	18.94
Price to next year expected earnings	16.83	17.19
Price-earnings-growth (PEG)	1.61	1.87
Price to operating profit (P/OP)	10.99	14.45
Price to sales (P/S)	3.54	1.65
Price to book value (P/BV)	3.73	3.37

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

Union Pacific Corp., historical price multiples

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Price to earnings (P/E)	15.85	16.93	16.65	16.53	10.60
Price to operating profit (P/OP)	9.26	9.74	9.29	9.25	6.08
Price to sales (P/S)	2.99	2.85	2.73	2.22	1.38
Price to book value (P/BV)	3.14	3.00	2.61	1.85	1.60

Ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Union Pacific Corp.'s P/E ratio increased from 2010 to 2011 but then declined significantly from 2011 to 2012.
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Union Pacific Corp.'s P/OP ratio increased from 2010 to 2011 but then declined significantly from 2011 to 2012.
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Union Pacific Corp.'s P/S ratio increased from 2010 to 2011 and from 2011 to 2012.
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.	Union Pacific Corp.'s P/BV ratio increased from 2010 to 2011 and from 2011 to 2012.

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
No. shares of common stock outstanding¹	469,298,732	480,067,865	491,001,416	505,286,368	503,193,533
Selected Financial Data (USD $)
Net income (in millions)	3,943	3,292	2,780	1,898	2,338
Earnings per share (EPS)	8.40	6.86	5.66	3.76	4.65
Share price^1, 2	133.15	116.11	94.25	62.10	49.27
P/E Ratio, Comparison to Industry
Union Pacific Corp.	15.85	16.93	16.65	16.53	10.60
Industry, Industrials	17.43	15.03	18.85	18.75	8.52

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Union Pacific Corp.'s Annual Report.

Ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Union Pacific Corp.'s P/E ratio increased from 2010 to 2011 but then declined significantly from 2011 to 2012.

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
No. shares of common stock outstanding¹	469,298,732	480,067,865	491,001,416	505,286,368	503,193,533
Selected Financial Data (USD $)
Operating income (in millions)	6,745	5,724	4,981	3,392	4,075
Operating profit per share	14.37	11.92	10.14	6.71	8.10
Share price^1, 2	133.15	116.11	94.25	62.10	49.27
P/OP Ratio, Comparison to Industry
Union Pacific Corp.	9.26	9.74	9.29	9.25	6.08
Industry, Industrials	13.30	11.87	13.21	12.22	7.31

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Union Pacific Corp.'s Annual Report.

Ratio	Description	The company
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Union Pacific Corp.'s P/OP ratio increased from 2010 to 2011 but then declined significantly from 2011 to 2012.

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
No. shares of common stock outstanding¹	469,298,732	480,067,865	491,001,416	505,286,368	503,193,533
Selected Financial Data (USD $)
Operating revenues (in millions)	20,926	19,557	16,965	14,143	17,970
Sales per share	44.59	40.74	34.55	27.99	35.71
Share price^1, 2	133.15	116.11	94.25	62.10	49.27
P/S Ratio, Comparison to Industry
Union Pacific Corp.	2.99	2.85	2.73	2.22	1.38
Industry, Industrials	1.52	1.48	1.61	1.27	0.79

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Union Pacific Corp.'s Annual Report.

Ratio	Description	The company
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Union Pacific Corp.'s P/S ratio increased from 2010 to 2011 and from 2011 to 2012.

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
No. shares of common stock outstanding¹	469,298,732	480,067,865	491,001,416	505,286,368	503,193,533
Selected Financial Data (USD $)
Common shareholders’ equity (in millions)	19,877	18,578	17,763	16,941	15,447
Book value per share (BVPS)	42.35	38.70	36.18	33.53	30.70
Share price^1, 2	133.15	116.11	94.25	62.10	49.27
P/BV Ratio, Comparison to Industry
Union Pacific Corp.	3.14	3.00	2.61	1.85	1.60
Industry, Industrials	3.10	3.06	3.18	2.60	2.03

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Union Pacific Corp.'s Annual Report.

Ratio	Description	The company
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.	Union Pacific Corp.'s P/BV ratio increased from 2010 to 2011 and from 2011 to 2012.