Stock Analysis on Net

UnitedHealth Group Inc. (NYSE:UNH)

Enterprise Value to EBITDA (EV/EBITDA) 

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

UnitedHealth Group Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net earnings attributable to UnitedHealth Group common shareholders 17,285  15,403  13,839  11,986  10,558 
Add: Net income attributable to noncontrolling interest 447  366  400  396  265 
Add: Income tax expense 4,578  4,973  3,742  3,562  3,200 
Earnings before tax (EBT) 22,310  20,742  17,981  15,944  14,023 
Add: Interest expense 1,660  1,663  1,704  1,400  1,186 
Earnings before interest and tax (EBIT) 23,970  22,405  19,685  17,344  15,209 
Add: Depreciation and amortization 3,103  2,891  2,720  2,428  2,245 
Earnings before interest, tax, depreciation and amortization (EBITDA) 27,073  25,296  22,405  19,772  17,454 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. UnitedHealth Group Inc. EBITDA increased from 2019 to 2020 and from 2020 to 2021.

Enterprise Value to EBITDA Ratio, Current

UnitedHealth Group Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 522,858 
Earnings before interest, tax, depreciation and amortization (EBITDA) 27,073 
Valuation Ratio
EV/EBITDA 19.31
Benchmarks
EV/EBITDA, Competitors1
Abbott Laboratories 16.19
Bristol-Myers Squibb Co. 9.21
CVS Health Corp. 10.20
Danaher Corp. 23.15
Elevance Health Inc. 10.40
Intuitive Surgical Inc. 36.92
Medtronic PLC 15.73
EV/EBITDA, Sector
Health Care Equipment & Services 15.40
EV/EBITDA, Industry
Health Care 14.10

Based on: 10-K (reporting date: 2021-12-31).

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

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 470,898  338,798  309,592  274,659  234,469 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 27,073  25,296  22,405  19,772  17,454 
Valuation Ratio
EV/EBITDA3 17.39 13.39 13.82 13.89 13.43
Benchmarks
EV/EBITDA, Competitors4
Abbott Laboratories 17.42 25.99 21.70 21.41 20.08
Bristol-Myers Squibb Co. 8.65 34.35 23.84 11.97 17.25
CVS Health Corp. 10.41 8.56 9.43 21.09 8.13
Danaher Corp. 21.05 26.68 25.23 18.47 17.93
Elevance Health Inc. 10.05 7.57 9.05 11.15 9.78
Intuitive Surgical Inc. 44.54 59.12 37.53 40.47 37.53
Medtronic PLC 24.41 17.92 16.01 13.94 16.32
EV/EBITDA, Sector
Health Care Equipment & Services 15.31 16.82 15.61 15.93 14.32
EV/EBITDA, Industry
Health Care 13.51 17.75 14.62 14.97 13.83

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 See details »

3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 470,898 ÷ 27,073 = 17.39

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. UnitedHealth Group Inc. EV/EBITDA ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.