Stock Analysis on Net

UnitedHealth Group Inc. (NYSE:UNH)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Current Valuation Ratios

UnitedHealth Group Inc., current price multiples

Microsoft Excel
UnitedHealth Group Inc. Abbott Laboratories Cigna Group CVS Health Corp. Danaher Corp. Elevance Health Inc. Humana Inc. Intuitive Surgical Inc. Medtronic PLC Health Care Equipment & Services Health Care
Selected Financial Data
Current share price (P) $494.70
No. shares of common stock outstanding 921,934,109
Growth rate (g) 17.25%
 
Earnings per share (EPS) $24.28
Next year expected EPS $28.46
Operating profit per share $35.10
Sales per share $398.65
Book value per share (BVPS) $96.27
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 20.38 34.46 20.56 12.03 38.95 20.15 16.81 78.20 30.79 24.23 29.45
Price to next year expected earnings 17.38 32.25 18.46 11.34 35.54 17.91 14.31 68.90 30.18 22.01 26.68
Price-earnings-growth (PEG) 1.18 5.02 1.81 1.96 4.06 1.61 0.96 5.79 15.04 2.40 2.84
Price to operating profit (P/OP) 14.09 30.44 12.44 7.30 35.51 15.85 10.42 79.58 21.10 17.18 25.25
Price to sales (P/S) 1.24 4.92 0.55 0.28 7.73 0.71 0.40 19.74 3.71 1.13 2.39
Price to book value (P/BV) 5.14 5.11 2.30 1.31 3.45 3.07 2.57 10.57 2.25 3.45 5.30

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

UnitedHealth Group Inc., historical price multiples

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Price to earnings (P/E) 20.53 22.46 26.03 20.54 20.48
Price to operating profit (P/OP) 14.20 15.89 18.77 14.12 14.40
Price to sales (P/S) 1.25 1.40 1.58 1.24 1.18
Price to book value (P/BV) 5.18 5.81 6.27 4.83 4.92

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. UnitedHealth Group Inc. P/E ratio decreased from 2021 to 2022 and from 2022 to 2023.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. UnitedHealth Group Inc. P/OP ratio decreased from 2021 to 2022 and from 2022 to 2023.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. UnitedHealth Group Inc. P/S ratio decreased from 2021 to 2022 and from 2022 to 2023.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. UnitedHealth Group Inc. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

UnitedHealth Group Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 921,934,109 932,846,602 940,899,146 945,319,404 948,573,372
Selected Financial Data (US$)
Net earnings attributable to UnitedHealth Group common shareholders (in millions) 22,381 20,120 17,285 15,403 13,839
Earnings per share (EPS)2 24.28 21.57 18.37 16.29 14.59
Share price1, 3 498.28 484.33 478.23 334.65 298.78
Valuation Ratio
P/E ratio4 20.53 22.46 26.03 20.54 20.48
Benchmarks
P/E Ratio, Competitors5
Abbott Laboratories 34.57 26.76 29.13 48.49 41.83
Cigna Group 19.03 13.13 13.43 8.71 13.26
CVS Health Corp. 11.47 27.53 17.39 12.88 14.15
Danaher Corp. 39.09 25.65 29.94 44.49 38.34
Elevance Health Inc. 19.80 19.20 18.13 15.87 15.96
Humana Inc. 17.64 22.52 18.34 14.48 18.10
Intuitive Surgical Inc. 74.11 64.99 59.94 87.47 48.72
Medtronic PLC 30.94 23.38 46.56 26.30 28.78
P/E Ratio, Sector
Health Care Equipment & Services 23.99 23.33 25.54 22.65 22.70
P/E Ratio, Industry
Health Care 28.84 21.08 21.04 28.47 21.23

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net earnings attributable to UnitedHealth Group common shareholders ÷ No. shares of common stock outstanding
= 22,381,000,000 ÷ 921,934,109 = 24.28

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

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 498.28 ÷ 24.28 = 20.53

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. UnitedHealth Group Inc. P/E ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Operating Profit (P/OP)

UnitedHealth Group Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 921,934,109 932,846,602 940,899,146 945,319,404 948,573,372
Selected Financial Data (US$)
Earnings from operations (in millions) 32,358 28,435 23,970 22,405 19,685
Operating profit per share2 35.10 30.48 25.48 23.70 20.75
Share price1, 3 498.28 484.33 478.23 334.65 298.78
Valuation Ratio
P/OP ratio4 14.20 15.89 18.77 14.12 14.40
Benchmarks
P/OP Ratio, Competitors5
Abbott Laboratories 30.54 22.18 24.45 40.69 34.03
Cigna Group 11.51 10.40 9.08 9.03 8.38
CVS Health Corp. 6.96 14.75 10.43 6.65 7.83
Danaher Corp. 35.64 20.97 25.14 36.91 34.47
Elevance Health Inc. 15.57 15.05 15.70 12.10 13.55
Humana Inc. 10.94 16.63 17.08 9.78 15.35
Intuitive Surgical Inc. 75.42 54.49 56.11 88.37 48.89
Medtronic PLC 21.20 20.48 37.44 26.29 21.26
P/OP Ratio, Sector
Health Care Equipment & Services 17.00 17.45 19.20 16.88 16.21
P/OP Ratio, Industry
Health Care 24.73 16.35 17.40 21.24 17.43

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Earnings from operations ÷ No. shares of common stock outstanding
= 32,358,000,000 ÷ 921,934,109 = 35.10

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

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 498.28 ÷ 35.10 = 14.20

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. UnitedHealth Group Inc. P/OP ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Sales (P/S)

UnitedHealth Group Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 921,934,109 932,846,602 940,899,146 945,319,404 948,573,372
Selected Financial Data (US$)
Revenues, customers (in millions) 367,533 322,132 285,273 255,639 240,269
Sales per share2 398.65 345.32 303.19 270.43 253.30
Share price1, 3 498.28 484.33 478.23 334.65 298.78
Valuation Ratio
P/S ratio4 1.25 1.40 1.58 1.24 1.18
Benchmarks
P/S Ratio, Competitors5
Abbott Laboratories 4.93 4.25 4.78 6.30 4.83
Cigna Group 0.51 0.49 0.42 0.46 0.44
CVS Health Corp. 0.27 0.36 0.47 0.35 0.37
Danaher Corp. 7.76 5.79 6.37 7.01 6.29
Elevance Health Inc. 0.70 0.74 0.81 0.60 0.74
Humana Inc. 0.42 0.68 0.65 0.64 0.76
Intuitive Surgical Inc. 18.71 13.81 17.89 21.29 15.01
Medtronic PLC 3.72 3.72 5.57 4.36 4.36
P/S Ratio, Sector
Health Care Equipment & Services 1.12 1.19 1.38 1.23 1.15
P/S Ratio, Industry
Health Care 2.34 2.17 2.29 2.24 2.16

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Revenues, customers ÷ No. shares of common stock outstanding
= 367,533,000,000 ÷ 921,934,109 = 398.65

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

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 498.28 ÷ 398.65 = 1.25

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. UnitedHealth Group Inc. P/S ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Book Value (P/BV)

UnitedHealth Group Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 921,934,109 932,846,602 940,899,146 945,319,404 948,573,372
Selected Financial Data (US$)
Shareholders’ equity attributable to UnitedHealth Group (in millions) 88,756 77,772 71,760 65,491 57,616
Book value per share (BVPS)2 96.27 83.37 76.27 69.28 60.74
Share price1, 3 498.28 484.33 478.23 334.65 298.78
Valuation Ratio
P/BV ratio4 5.18 5.81 6.27 4.83 4.92
Benchmarks
P/BV Ratio, Competitors5
Abbott Laboratories 5.12 5.06 5.75 6.65 4.96
Cigna Group 2.13 1.95 1.53 1.46 1.49
CVS Health Corp. 1.25 1.61 1.83 1.33 1.47
Danaher Corp. 3.47 3.64 4.16 3.93 3.72
Elevance Health Inc. 3.02 3.19 3.07 2.19 2.42
Humana Inc. 2.70 4.13 3.34 3.55 4.07
Intuitive Surgical Inc. 10.01 7.78 8.59 9.53 8.13
Medtronic PLC 2.26 2.24 3.26 2.48 2.66
P/BV Ratio, Sector
Health Care Equipment & Services 3.42 3.55 3.81 3.28 3.14
P/BV Ratio, Industry
Health Care 5.19 4.72 4.81 4.61 4.46

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Shareholders’ equity attributable to UnitedHealth Group ÷ No. shares of common stock outstanding
= 88,756,000,000 ÷ 921,934,109 = 96.27

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

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 498.28 ÷ 96.27 = 5.18

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. UnitedHealth Group Inc. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023.