Stock Analysis on Net

UnitedHealth Group Inc. (NYSE:UNH)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel LibreOffice Calc

Current Valuation Ratios

UnitedHealth Group Inc., current price multiples

Microsoft Excel LibreOffice Calc
UnitedHealth Group Inc. Abbott Laboratories Anthem Inc. Bristol-Myers Squibb Co. CVS Health Corp. Danaher Corp. HCA Healthcare Inc. Intuitive Surgical Inc. Medtronic PLC Stryker Corp. Health Care Equipment & Services Health Care
Selected Financial Data
Current share price (P) $485.73
No. shares of common stock outstanding 938,171,603
Growth rate (g) 16.75%
 
Earnings per share (EPS) $18.42
Next year expected EPS $21.51
Operating profit per share $25.55
Sales per share $304.07
Book value per share (BVPS) $76.49
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 26.36 28.04 19.47 23.19 15.74 29.20 8.70 46.13 38.14 44.05 24.39 20.92
Price to next year expected earnings 22.58 27.05 17.40 23.50 14.85 26.82 1.11 40.24 37.20 41.17 22.54 19.17
Price-earnings-growth (PEG) 1.57 7.62 1.64 2.62 3.29 0.01 3.15 15.07 6.30 2.98 2.30
Price to operating profit (P/OP) 19.01 23.53 16.86 21.99 9.44 24.52 5.36 43.18 30.68 33.99 18.33 17.22
Price to sales (P/S) 1.60 4.60 0.87 3.50 0.43 6.22 1.03 13.77 4.57 5.13 1.70 2.74
Price to book value (P/BV) 6.35 5.54 3.30 4.51 1.66 4.05 6.61 2.67 5.90 4.26 5.43

Based on: 10-K (reporting date: 2021-12-31).

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 LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Price to earnings (P/E) 26.03 20.54 20.48 21.09 20.77
Price to operating profit (P/OP) 18.77 14.12 14.40 14.58 14.42
Price to sales (P/S) 1.58 1.24 1.18 1.12 1.10
Price to book value (P/BV) 6.27 4.83 4.92 4.89 4.59

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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 increased from 2019 to 2020 and from 2020 to 2021.
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 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
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 increased from 2019 to 2020 and from 2020 to 2021.
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 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 940,899,146 945,319,404 948,573,372 959,538,515 967,662,919
Selected Financial Data (US$)
Net earnings attributable to UnitedHealth Group common shareholders (in millions) 17,285  15,403  13,839  11,986  10,558 
Earnings per share (EPS)2 18.37 16.29 14.59 12.49 10.91
Share price1, 3 478.23 334.65 298.78 263.50 226.64
Valuation Ratio
P/E ratio4 26.03 20.54 20.48 21.09 20.77
Benchmarks
P/E Ratio, Competitors5
Abbott Laboratories 29.13 48.49 41.83 56.47 220.29
Anthem Inc. 18.13 15.87 15.96 21.45 15.44
Bristol-Myers Squibb Co. 20.92 41.99 16.81 103.55
CVS Health Corp. 17.39 12.88 14.15 10.69
Danaher Corp. 29.94 44.49 38.34 29.77 27.25
HCA Healthcare Inc. 10.65 16.06 14.30 12.84 15.92
Intuitive Surgical Inc. 59.94 87.47 48.72 53.03 70.95
Medtronic PLC 46.56 26.30 28.78 37.80 29.96
Stryker Corp. 47.65 57.72 39.24 18.96 54.36
P/E Ratio, Sector
Health Care Equipment & Services 25.46 36.45 25.51 27.19 26.88
P/E Ratio, Industry
Health Care 20.33 32.08 21.90 24.86 30.51

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
EPS = Net earnings attributable to UnitedHealth Group common shareholders ÷ No. shares of common stock outstanding
= 17,285,000,000 ÷ 940,899,146 = 18.37

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

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 478.23 ÷ 18.37 = 26.03

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 increased from 2019 to 2020 and from 2020 to 2021.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 940,899,146 945,319,404 948,573,372 959,538,515 967,662,919
Selected Financial Data (US$)
Earnings from operations (in millions) 23,970  22,405  19,685  17,344  15,209 
Operating profit per share2 25.48 23.70 20.75 18.08 15.72
Share price1, 3 478.23 334.65 298.78 263.50 226.64
Valuation Ratio
P/OP ratio4 18.77 14.12 14.40 14.58 14.42
Benchmarks
P/OP Ratio, Competitors5
Abbott Laboratories 24.45 40.69 34.03 36.64 60.88
Anthem Inc. 15.70 12.10 13.55 15.87 14.81
Bristol-Myers Squibb Co. 19.84 24.42 16.16 28.87
CVS Health Corp. 10.43 6.65 7.83 18.65 7.44
Danaher Corp. 25.14 36.91 34.47 23.18 22.48
HCA Healthcare Inc. 6.56 8.31 6.93 6.88 5.82
Intuitive Surgical Inc. 56.11 88.37 48.89 49.87 44.40
Medtronic PLC 37.44 26.29 21.26 17.64 22.64
Stryker Corp. 36.77 41.52 30.13 26.55 24.21
P/OP Ratio, Sector
Health Care Equipment & Services 19.13 23.46 17.45 17.78 17.07
P/OP Ratio, Industry
Health Care 16.74 22.87 17.76 18.21 16.96

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Operating profit per share = Earnings from operations ÷ No. shares of common stock outstanding
= 23,970,000,000 ÷ 940,899,146 = 25.48

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

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 478.23 ÷ 25.48 = 18.77

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 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 940,899,146 945,319,404 948,573,372 959,538,515 967,662,919
Selected Financial Data (US$)
Revenues (in millions) 285,273  255,639  240,269  224,871  200,136 
Sales per share2 303.19 270.43 253.30 234.35 206.82
Share price1, 3 478.23 334.65 298.78 263.50 226.64
Valuation Ratio
P/S ratio4 1.58 1.24 1.18 1.12 1.10
Benchmarks
P/S Ratio, Competitors5
Abbott Laboratories 4.78 6.30 4.83 4.37 3.84
Anthem Inc. 0.81 0.60 0.74 0.88 0.67
Bristol-Myers Squibb Co. 3.16 3.16 5.52 3.67 5.02
CVS Health Corp. 0.47 0.35 0.37 0.39 0.38
Danaher Corp. 6.37 7.01 6.29 3.97 3.70
HCA Healthcare Inc. 1.26 1.17 0.98 1.04 0.81
Intuitive Surgical Inc. 17.89 21.29 15.01 16.06 14.97
Medtronic PLC 5.57 4.36 4.36 3.92 4.06
Stryker Corp. 5.55 6.43 5.49 4.95 4.46
P/S Ratio, Sector
Health Care Equipment & Services 1.78 1.61 1.54 1.47 1.41
P/S Ratio, Industry
Health Care 2.66 2.65 2.48 2.47 2.43

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 285,273,000,000 ÷ 940,899,146 = 303.19

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

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 478.23 ÷ 303.19 = 1.58

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 increased from 2019 to 2020 and from 2020 to 2021.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 940,899,146 945,319,404 948,573,372 959,538,515 967,662,919
Selected Financial Data (US$)
Shareholders’ equity attributable to UnitedHealth Group (in millions) 71,760  65,491  57,616  51,696  47,776 
Book value per share (BVPS)2 76.27 69.28 60.74 53.88 49.37
Share price1, 3 478.23 334.65 298.78 263.50 226.64
Valuation Ratio
P/BV ratio4 6.27 4.83 4.92 4.89 4.59
Benchmarks
P/BV Ratio, Competitors5
Abbott Laboratories 5.75 6.65 4.96 4.38 3.40
Anthem Inc. 3.07 2.19 2.42 2.82 2.24
Bristol-Myers Squibb Co. 4.07 3.55 2.80 5.89 8.88
CVS Health Corp. 1.83 1.33 1.47 1.29 1.88
Danaher Corp. 4.16 3.93 3.72 2.80 2.58
HCA Healthcare Inc. 105.40
Intuitive Surgical Inc. 8.59 9.53 8.13 8.96 9.91
Medtronic PLC 3.26 2.48 2.66 2.31 2.40
Stryker Corp. 6.39 7.05 6.38 5.74 5.56
P/BV Ratio, Sector
Health Care Equipment & Services 4.45 3.86 3.58 3.62 3.70
P/BV Ratio, Industry
Health Care 5.28 5.20 4.91 4.89 4.51

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
BVPS = Shareholders’ equity attributable to UnitedHealth Group ÷ No. shares of common stock outstanding
= 71,760,000,000 ÷ 940,899,146 = 76.27

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

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 478.23 ÷ 76.27 = 6.27

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 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.