Stock Analysis on Net
Stock Analysis on Net

UnitedHealth Group Inc. (NYSE:UNH) 

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

UnitedHealth Group Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Net earnings attributable to UnitedHealth Group common shareholders 12,056 14,405 22,381 20,120 17,285
Earnings attributable to noncontrolling interests 751 837 763 519 447
Net noncash charges 4,608 9,770 4,281 3,321 3,089
Net change in other operating items, net of effects from acquisitions and dispositions 2,282 (808) 1,643 2,246 1,522
Cash flows from operating activities 19,697 24,204 29,068 26,206 22,343
Purchases of property, equipment and capitalized software (3,622) (3,499) (3,386) (2,802) (2,454)
Repayments of long-term debt (3,050) (3,000) (2,125) (3,015) (3,150)
Proceeds from (repayments of) short-term borrowings, net 807 (151) 11 732 (1,302)
Proceeds from issuance of long-term debt 2,969 17,811 6,394 14,819 6,933
Free cash flow to equity (FCFE) 16,801 35,365 29,962 35,940 22,370

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).

Cash flows from operating activities and free cash flow to equity (FCFE) exhibited fluctuating performance over the five-year period. Operating cash flow generally increased through 2023, then decreased in subsequent years. FCFE demonstrated a more pronounced pattern of increase and decrease, with a significant drop observed in the final year of the period.

Operating Cash Flow Trend
Cash flows from operating activities increased from US$22,343 million in 2021 to US$29,068 million in 2023, representing a substantial rise. However, a decline was then observed, with operating cash flow decreasing to US$24,204 million in 2024 and further decreasing to US$19,697 million in 2025. This suggests potential challenges in maintaining consistent operational cash generation.
Free Cash Flow to Equity (FCFE) Trend
FCFE experienced a significant increase from US$22,370 million in 2021 to US$35,940 million in 2022. While remaining relatively high, FCFE decreased to US$29,962 million in 2023 before increasing again to US$35,365 million in 2024. A substantial decrease was then recorded in 2025, with FCFE falling to US$16,801 million. This volatility indicates potential shifts in capital allocation strategies or underlying business performance impacting cash available to equity holders.
Relationship between Operating Cash Flow and FCFE
While both metrics generally moved in the same direction, the magnitude of change in FCFE was greater than that of operating cash flow. This suggests that factors beyond core operating activities, such as changes in debt levels, share repurchases, or dividend payments, significantly influenced the amount of cash flow available to equity holders. The divergence between the two metrics became more pronounced in 2025, indicating a potentially substantial impact from these non-operating factors.

The observed trends suggest a period of growth followed by increasing volatility in cash flow generation. The significant decline in both operating cash flow and FCFE in 2025 warrants further investigation to determine the underlying causes and potential implications for future performance.

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Price to FCFE Ratio, Current

UnitedHealth Group Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 907,675,839
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 16,801
FCFE per share 18.51
Current share price (P) 272.28
Valuation Ratio
P/FCFE 14.71
Benchmarks
P/FCFE, Competitors1
Abbott Laboratories 31.28
Elevance Health Inc. 16.85
Intuitive Surgical Inc. 67.29
Medtronic PLC 15.18
P/FCFE, Sector
Health Care Equipment & Services 21.29
P/FCFE, Industry
Health Care 22.67

Based on: 10-K (reporting date: 2025-12-31).

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

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
No. shares of common stock outstanding1 907,675,839 914,712,333 921,934,109 932,846,602 940,899,146
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 16,801 35,365 29,962 35,940 22,370
FCFE per share3 18.51 38.66 32.50 38.53 23.78
Share price1, 4 294.93 468.56 498.28 484.33 478.23
Valuation Ratio
P/FCFE5 15.93 12.12 15.33 12.57 20.11
Benchmarks
P/FCFE, Competitors6
Abbott Laboratories 33.73 40.25 76.56 26.11 24.52
Elevance Health Inc. 19.67 8.26 16.04 14.26 11.07
Intuitive Surgical Inc. 68.28 156.44 177.77 89.67 58.39
Medtronic PLC 15.10 16.39 29.20 19.71 38.91
P/FCFE, Sector
Health Care Equipment & Services 22.60 17.78 22.95 16.47 22.14
P/FCFE, Industry
Health Care 24.43 19.36 18.20 18.50 17.94

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).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 16,801,000,000 ÷ 907,675,839 = 18.51

4 Closing price as at the filing date of UnitedHealth Group Inc. Annual Report.

5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 294.93 ÷ 18.51 = 15.93

6 Click competitor name to see calculations.

The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits fluctuations over the observed period. Initial values indicate a decrease followed by a period of relative stability, concluding with a notable increase in the most recent year.

Share Price
The share price demonstrated an increasing trend from 2021 to 2023, rising from US$478.23 to US$498.28. A subsequent decline occurred in 2024, reaching US$468.56, followed by a substantial decrease to US$294.93 in 2025.
FCFE per Share
FCFE per share increased significantly from US$23.78 in 2021 to US$38.53 in 2022. This was followed by a decrease to US$32.50 in 2023, a rebound to US$38.66 in 2024, and a considerable decline to US$18.51 in 2025.
P/FCFE Ratio
The P/FCFE ratio began at 20.11 in 2021, decreased to 12.57 in 2022, and then rose to 15.33 in 2023. It decreased again to 12.12 in 2024 before increasing to 15.93 in 2025. The ratio’s movement appears to be influenced by the combined trends of the share price and FCFE per share, with the 2025 value being notably impacted by the significant drop in share price despite a concurrent, though smaller, decrease in FCFE per share.

The interplay between share price and FCFE per share suggests a dynamic valuation. The decrease in the P/FCFE ratio in 2022 likely reflects a period of strong FCFE growth relative to the share price. The subsequent fluctuations indicate changing investor sentiment or performance expectations. The increase in the P/FCFE ratio in 2025, despite a decline in both share price and FCFE per share, warrants further investigation to understand the underlying drivers.

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