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, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net earnings attributable to UnitedHealth Group common shareholders 15,403  13,839  11,986  10,558  7,017 
Add: Net income attributable to noncontrolling interest 366  400  396  265  56 
Add: Income tax expense 4,973  3,742  3,562  3,200  4,790 
Earnings before tax (EBT) 20,742  17,981  15,944  14,023  11,863 
Add: Interest expense 1,663  1,704  1,400  1,186  1,067 
Earnings before interest and tax (EBIT) 22,405  19,685  17,344  15,209  12,930 
Add: Depreciation and amortization 2,891  2,720  2,428  2,245  2,055 
Earnings before interest, tax, depreciation and amortization (EBITDA) 25,296  22,405  19,772  17,454  14,985 

Based on: 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), 10-K (reporting date: 2016-12-31).

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 2018 to 2019 and from 2019 to 2020.

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) 456,801 
Earnings before interest, tax, depreciation and amortization (EBITDA) 25,296 
Valuation Ratio
EV/EBITDA 18.06
Benchmarks
EV/EBITDA, Competitors1
Abbott Laboratories 26.50
Anthem Inc. 11.80
Becton, Dickinson & Co. 18.13
Bristol-Myers Squibb Co. 35.70
CVS Health Corp. 10.99
Danaher Corp. 33.44
Edwards Lifesciences Corp. 66.87
HCA Healthcare Inc. 10.84
Intuitive Surgical Inc. 61.49
Medtronic PLC 20.97
Stryker Corp. 34.74
EV/EBITDA, Sector
Health Care Equipment & Services 20.36
EV/EBITDA, Industry
Health Care 21.00

Based on: 10-K (reporting date: 2020-12-31).

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, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 338,798  309,592  274,659  234,469  168,974 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 25,296  22,405  19,772  17,454  14,985 
Valuation Ratio
EV/EBITDA3 13.39 13.82 13.89 13.43 11.28
Benchmarks
EV/EBITDA, Competitors4
Abbott Laboratories 25.99 21.70 21.41 20.08 25.22
Anthem Inc. 7.57 9.05 11.15 9.78 5.85
Becton, Dickinson & Co. 22.08 21.93 22.08 21.58 17.76
Bristol-Myers Squibb Co. 34.35 23.84 11.97 17.25 14.26
CVS Health Corp. 8.56 9.43 21.09 8.13 8.48
Danaher Corp. 26.68 25.23 18.47 17.93 17.88
Edwards Lifesciences Corp. 51.87 37.05 42.10 24.39 22.48
HCA Healthcare Inc. 9.43 8.84 8.86 8.46 7.57
Intuitive Surgical Inc. 59.12 37.53 40.47 37.53 23.10
Medtronic PLC 17.92 16.01 13.94 16.32 15.92
Stryker Corp. 33.52 24.38 21.99 20.29 18.37
EV/EBITDA, Sector
Health Care Equipment & Services 17.18 15.81 15.94 14.32 12.51
EV/EBITDA, Industry
Health Care 18.02 14.98 15.13 13.95 12.63

Based on: 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), 10-K (reporting date: 2016-12-31).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 338,798 ÷ 25,296 = 13.39

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 2018 to 2019 and from 2019 to 2020.