UnitedHealth Group Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net earnings attributable to UnitedHealth Group common shareholders	14,405)	22,381)	20,120)	17,285)	15,403)
Earnings attributable to noncontrolling interests	837)	763)	519)	447)	366)
Net noncash charges	9,770)	4,281)	3,321)	3,089)	3,510)
Net change in other operating items, net of effects from acquisitions and dispositions	(808)	1,643)	2,246)	1,522)	2,895)
Cash flows from operating activities	24,204)	29,068)	26,206)	22,343)	22,174)
Purchases of property, equipment and capitalized software	(3,499)	(3,386)	(2,802)	(2,454)	(2,051)
Repayments of long-term debt	(3,000)	(2,125)	(3,015)	(3,150)	(3,150)
Proceeds from (repayments of) short-term borrowings, net	(151)	11)	732)	(1,302)	872)
Proceeds from issuance of long-term debt	17,811)	6,394)	14,819)	6,933)	4,864)
Free cash flow to equity (FCFE)	35,365)	29,962)	35,940)	22,370)	22,709)

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.

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

No. shares of common stock outstanding	907,140,441
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	35,365)
FCFE per share	38.99
Current share price (P)	308.55
Valuation Ratio
P/FCFE	7.91
Benchmarks
P/FCFE, Competitors¹
Abbott Laboratories	40.23
CVS Health Corp.	7.49
Elevance Health Inc.	7.31
Intuitive Surgical Inc.	149.68
Medtronic PLC	15.46
P/FCFE, Sector
Health Care Equipment & Services	13.91
P/FCFE, Industry
Health Care	17.04

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.

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	914,712,333	921,934,109	932,846,602	940,899,146	945,319,404
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	35,365)	29,962)	35,940)	22,370)	22,709)
FCFE per share³	38.66	32.50	38.53	23.78	24.02
Share price^1, 4	468.56	498.28	484.33	478.23	334.65
Valuation Ratio
P/FCFE⁵	12.12	15.33	12.57	20.11	13.93
Benchmarks
P/FCFE, Competitors⁶
Abbott Laboratories	40.25	76.56	26.11	24.52	38.42
CVS Health Corp.	7.00	5.22	12.36	21.23	11.93
Elevance Health Inc.	8.26	16.04	14.26	11.07	7.75
Intuitive Surgical Inc.	156.44	177.77	89.67	58.39	81.15
Medtronic PLC	16.39	29.20	19.71	38.91	23.06
P/FCFE, Sector
Health Care Equipment & Services	16.05	17.79	15.91	22.03	17.62
P/FCFE, Industry
Health Care	18.69	17.15	18.11	18.05	17.25

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.

² See details »

³ 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 35,365,000,000 ÷ 914,712,333 = 38.66

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

⁵ 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 468.56 ÷ 38.66 = 12.12

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.

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UnitedHealth Group Inc. (NYSE:UNH)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical