Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
UnitedHealth Group Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Earnings before interest, tax, depreciation, and amortization (EBITDA) exhibited a generally positive trajectory from 2021 to 2023, followed by declines in the subsequent two years. This analysis details the observed trends in EBITDA alongside related profitability metrics.
- Overall EBITDA Trend
- EBITDA increased from US$27,073 million in 2021 to US$36,330 million in 2023, representing a compound annual growth rate of approximately 12.3%. However, EBITDA decreased to US$28,076 million in 2024 and further to US$23,060 million in 2025. This indicates a reversal of the prior growth trend, with a decline of approximately 36.4% from the 2023 peak to 2025.
- Relationship to Earnings Before Tax (EBT)
- EBT generally followed the same trend as EBITDA, increasing from US$22,310 million in 2021 to US$29,112 million in 2023, and then decreasing to US$20,071 million in 2024 and US$14,697 million in 2025. The correlation suggests that changes in EBITDA are a significant driver of changes in earnings before tax. The magnitude of the decline in EBT from 2023 to 2025 is similar to that of EBITDA, indicating a consistent impact of underlying operational performance.
- Relationship to Earnings Before Interest and Tax (EBIT)
- EBIT mirrored the trends observed in both EBITDA and EBT, rising from US$23,970 million in 2021 to US$32,358 million in 2023, before declining to US$23,977 million in 2024 and US$18,699 million in 2025. The consistent movement of EBIT alongside EBITDA and EBT reinforces the notion that core operational profitability is a key factor influencing overall financial performance. The decrease in EBIT from 2023 to 2025 is substantial, indicating a weakening of operational profitability.
- Relationship to Net Earnings
- Net earnings attributable to UnitedHealth Group common shareholders also increased from 2021 to 2023, reaching US$22,381 million, before experiencing a significant decrease to US$14,405 million in 2024 and US$12,056 million in 2025. While net earnings are influenced by factors beyond EBITDA, EBIT, and EBT, the parallel decline from 2023 to 2025 suggests a strong connection between operational performance and bottom-line profitability.
In summary, the period from 2021 to 2023 was characterized by growth in key profitability metrics, including EBITDA. However, a clear shift occurred beginning in 2024, with a consistent decline in EBITDA, EBT, EBIT, and net earnings. This suggests a potential change in the underlying business environment or operational efficiency that warrants further investigation.
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Enterprise Value to EBITDA Ratio, Current
UnitedHealth Group Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 304,933) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 23,060) |
| Valuation Ratio | |
| EV/EBITDA | 13.22 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | 15.12 |
| Elevance Health Inc. | 6.41 |
| Intuitive Surgical Inc. | 39.90 |
| Medtronic PLC | 14.13 |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | 14.46 |
| EV/EBITDA, Industry | |
| Health Care | 17.02 |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
UnitedHealth Group Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 323,949) | 481,999) | 494,200) | 481,109) | 470,898) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 23,060) | 28,076) | 36,330) | 31,835) | 27,073) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 14.05 | 17.17 | 13.60 | 15.11 | 17.39 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Abbott Laboratories | 16.53 | 22.28 | 19.49 | 15.85 | 17.42 | |
| Elevance Health Inc. | 7.34 | 8.15 | 10.24 | 10.26 | 10.05 | |
| Intuitive Surgical Inc. | 41.18 | 63.04 | 53.08 | 40.96 | 44.10 | |
| Medtronic PLC | 14.15 | 14.63 | 15.28 | 14.99 | 24.41 | |
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | 15.33 | 18.57 | 15.60 | 15.26 | 18.05 | |
| EV/EBITDA, Industry | ||||||
| Health Care | 17.72 | 21.03 | 20.27 | 14.00 | 14.33 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 323,949 ÷ 23,060 = 14.05
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited a generally decreasing trend from 2021 to 2023, followed by increases in the subsequent two years. Enterprise Value demonstrated an initial increase from 2021 to 2023, then a decrease in 2024 and a substantial decline in 2025. EBITDA consistently increased from 2021 to 2023, but experienced a significant reduction in 2024 and a further decrease in 2025.
- EV/EBITDA Trend
- The EV/EBITDA ratio decreased from 17.39 in 2021 to 13.60 in 2023, indicating a potentially improving valuation relative to earnings. However, the ratio increased to 17.17 in 2024 and remained elevated at 14.05 in 2025. This suggests a shift in valuation, potentially due to changes in market perception or underlying financial performance.
- Enterprise Value Analysis
- Enterprise Value increased from US$470,898 million in 2021 to US$494,200 million in 2023, representing a growth of approximately 5%. A subsequent decline to US$481,999 million in 2024 was followed by a substantial decrease to US$323,949 million in 2025. This significant reduction in Enterprise Value in 2025 warrants further investigation to determine the underlying causes.
- EBITDA Analysis
- EBITDA experienced consistent growth from US$27,073 million in 2021 to US$36,330 million in 2023, indicating improving operational profitability. However, EBITDA decreased significantly to US$28,076 million in 2024 and continued to decline to US$23,060 million in 2025. This downward trend in EBITDA, particularly the substantial decrease in 2025, is a key factor influencing the EV/EBITDA ratio.
The combined effect of decreasing Enterprise Value and decreasing EBITDA in 2024 and 2025 resulted in a fluctuating EV/EBITDA ratio. The substantial declines observed in both metrics in 2025 suggest a potential shift in the company’s financial position and require further scrutiny.
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