Price to FCFE (P/FCFE)
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UnitedHealth Group Inc. pages available for free this week:
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Free Cash Flow to Equity (FCFE)
UnitedHealth Group Inc., FCFE calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
- Cash Flows from Operating Activities
- The cash flows from operating activities show a general upward trend from 2020 through 2023, increasing from $22,174 million in 2020 to $29,068 million in 2023. This represents a rise of approximately 31% over the four-year period. However, in 2024, there is a noticeable decline to $24,204 million, which indicates a reduction of about 17% from the previous year, though the cash flow remains higher than the 2020 and 2021 levels.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity exhibits more volatility compared to operating cash flows. It started at $22,709 million in 2020 and slightly decreased to $22,370 million in 2021. Then, there was a significant surge in 2022 to $35,940 million, marking an increase of over 60% compared to 2021. In 2023, FCFE declined to $29,962 million but rebounded again in 2024 to $35,365 million, almost reaching the 2022 peak. This pattern suggests fluctuations in excess cash available to equity holders, with notable peaks in 2022 and 2024.
- Overall Insights
- Both cash flows from operating activities and free cash flow to equity demonstrate positive long-term growth from 2020 to 2024. The operating cash flow growth is steadier, with a dip in the final year, while FCFE shows larger fluctuations, indicating variability in capital expenditures, debt repayments, or other financing activities. The peaks in FCFE during 2022 and 2024 highlight periods of possibly improved financial flexibility or reduced capital investment requirements.
Price to FCFE Ratio, Current
UnitedHealth Group Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Abbott Laboratories | |
| CVS Health Corp. | |
| Elevance Health Inc. | |
| Intuitive Surgical Inc. | |
| Medtronic PLC | |
| P/FCFE, Sector | |
| Health Care Equipment & Services | |
| P/FCFE, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
UnitedHealth Group Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| P/FCFE, Sector | ||||||
| Health Care Equipment & Services | ||||||
| P/FCFE, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of UnitedHealth Group Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price experienced a significant increase from 334.65 US$ in 2020 to a peak of 498.28 US$ in 2023. However, in 2024, the share price declined slightly to 468.56 US$, indicating a minor downturn after the previous years of growth.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share remained relatively stable from 2020 to 2021, with values of 24.02 US$ and 23.78 US$, respectively. It saw a marked increase in 2022, reaching 38.53 US$, followed by a slight decrease to 32.5 US$ in 2023. In 2024, FCFE per share rose again to 38.66 US$, suggesting resumed improvement in free cash generation available to equity shareholders.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio showed some volatility across the periods. It started at 13.93 in 2020, increased significantly to 20.11 in 2021, indicating a higher market valuation relative to free cash flow. This was followed by a decrease to 12.57 in 2022, then a rise to 15.33 in 2023, and a drop again to 12.12 in 2024. The fluctuations suggest changing market perceptions of valuation relative to free cash flow, with the 2024 ratio reaching its lowest point in the observed period.
- Summary of Observations
- Overall, the financial indicators reveal a general upward trend in share price with some correction in the latest year, accompanied by a volatile but improving FCFE per share. The price to FCFE ratio's fluctuation indicates varying investor sentiment and valuation benchmarks in relation to free cash flow generation. The improved FCFE per share in 2024 alongside a lower P/FCFE ratio may suggest that shares could be relatively undervalued compared to earlier years, reflecting a potential investment opportunity or a cautious market outlook.