UnitedHealth Group Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net earnings attributable to UnitedHealth Group common shareholders	22,381)	20,120)	17,285)	15,403)	13,839)
Earnings attributable to noncontrolling interests	763)	519)	447)	366)	400)
Net noncash charges	4,281)	3,321)	3,089)	3,510)	3,541)
Net change in other operating items, net of effects from acquisitions and changes in AARP balances	1,643)	2,246)	1,522)	2,895)	683)
Cash flows from operating activities	29,068)	26,206)	22,343)	22,174)	18,463)
Cash paid for interest, net of tax¹	2,413)	1,523)	1,314)	1,295)	1,289)
Purchases of property, equipment and capitalized software	(3,386)	(2,802)	(2,454)	(2,051)	(2,071)
Free cash flow to the firm (FCFF)	28,095)	24,927)	21,203)	21,418)	17,681)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the UnitedHealth Group Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	UnitedHealth Group Inc. FCFF increased from 2021 to 2022 and from 2022 to 2023.

UnitedHealth Group Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	20.50%	21.70%	20.50%	24.00%	20.80%
Interest Paid, Net of Tax
Cash paid for interest, before tax	3,035)	1,945)	1,653)	1,704)	1,627)
Less: Cash paid for interest, tax²	622)	422)	339)	409)	338)
Cash paid for interest, net of tax	2,413)	1,523)	1,314)	1,295)	1,289)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² 2023 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 3,035 × 20.50% = 622

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	496,828)
Free cash flow to the firm (FCFF)	28,095)
Valuation Ratio
EV/FCFF	17.68
Benchmarks
EV/FCFF, Competitors¹
Abbott Laboratories	34.43
Cigna Group	10.86
CVS Health Corp.	11.31
Danaher Corp.	34.28
Elevance Health Inc.	14.85
Humana Inc.	8.72
Intuitive Surgical Inc.	166.50
Medtronic PLC	24.39
EV/FCFF, Sector
Health Care Equipment & Services	19.20
EV/FCFF, Industry
Health Care	22.94

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

UnitedHealth Group Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	494,200)	481,109)	470,898)	338,798)	309,592)
Free cash flow to the firm (FCFF)²	28,095)	24,927)	21,203)	21,418)	17,681)
Valuation Ratio
EV/FCFF³	17.59	19.30	22.21	15.82	17.51
Benchmarks
EV/FCFF, Competitors⁴
Abbott Laboratories	36.51	23.24	23.47	36.94	33.05
Cigna Group	10.44	13.38	14.17	9.16	10.24
CVS Health Corp.	11.96	10.00	10.30	9.42	12.30
Danaher Corp.	36.34	25.74	28.25	30.66	37.11
Elevance Health Inc.	14.19	13.32	12.74	6.04	12.73
Humana Inc.	9.95	14.88	42.03	7.92	8.46
Intuitive Surgical Inc.	170.92	85.45	56.01	76.70	54.58
Medtronic PLC	26.54	20.32	33.84	21.43	22.07
EV/FCFF, Sector
Health Care Equipment & Services	19.66	18.05	20.42	15.95	17.63
EV/FCFF, Industry
Health Care	23.69	17.73	17.16	17.81	18.15

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 494,200 ÷ 28,095 = 17.59

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	UnitedHealth Group Inc. EV/FCFF ratio decreased from 2021 to 2022 and from 2022 to 2023.

UnitedHealth Group Inc. (NYSE:UNH)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical