Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
UnitedHealth Group Inc., current price multiples
| UnitedHealth Group Inc. | Abbott Laboratories | CVS Health Corp. | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | Health Care Equipment & Services | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | $302.01 | ||||||||||
| No. shares of common stock outstanding | 907,140,441 | ||||||||||
| Growth rate (g) | 15.02% | ||||||||||
| Earnings per share (EPS) | $15.88 | ||||||||||
| Next year expected EPS | $18.26 | ||||||||||
| Operating profit per share | $35.59 | ||||||||||
| Sales per share | $435.52 | ||||||||||
| Book value per share (BVPS) | $102.14 | ||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | 19.02 | 17.26 | 18.25 | 14.15 | 78.60 | 23.73 | 21.79 | 32.88 | |||
| Price to next year expected earnings | 16.54 | 15.70 | 17.47 | 12.62 | 69.55 | 23.36 | 19.97 | 30.35 | |||
| Price-earnings-growth (PEG) | 1.27 | 1.74 | 4.09 | 1.17 | 6.04 | 15.16 | 2.39 | 3.95 | |||
| Price to operating profit (P/OP) | 8.49 | 33.90 | 9.89 | 11.62 | 77.72 | 18.58 | 15.50 | 22.96 | |||
| Price to sales (P/S) | 0.69 | 5.52 | 0.23 | 0.48 | 21.86 | 3.30 | 0.95 | 2.31 | |||
| Price to book value (P/BV) | 2.96 | 4.85 | 1.11 | 2.05 | 11.11 | 2.30 | 2.99 | 4.85 | |||
Based on: 10-K (reporting date: 2024-12-31).
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
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).
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibits variability over the observed periods. It increased from 20.54 in 2020 to a peak of 26.03 in 2021, indicating a higher market valuation relative to earnings during that year. Subsequently, it declined to 22.46 in 2022 and 20.53 in 2023, suggesting a moderation in market expectations or improved earnings. However, in 2024, the ratio rose sharply to 29.75, which may reflect either an increase in market optimism or a relative decrease in earnings compared to the stock price.
- Price to Operating Profit (P/OP) Ratio
- This ratio shows a peak in 2021 at 18.77, up from 14.12 in 2020, indicative of elevated market pricing relative to operating profit during that year. After 2021, there was a consistent downward trend, with the ratio decreasing to 15.89 in 2022, 14.2 in 2023, and further to 13.27 in 2024. The steady decline suggests either an improvement in operating profit or a relative decrease in share price valuation based on operating profit over these years.
- Price to Sales (P/S) Ratio
- The P/S ratio increased from 1.24 in 2020 to 1.58 in 2021, reflecting a higher valuation relative to sales. This was followed by a decrease to 1.4 in 2022, and a continued decline to 1.25 in 2023 and further to 1.08 in 2024. The overall trend after 2021 indicates a reduction in market valuation relative to sales, potentially signaling market caution or improving sales relative to price.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio peaked at 6.27 in 2021, up from 4.83 in 2020, demonstrating increased market valuation against the company's book value. Since then, the ratio has steadily declined each year—to 5.81 in 2022, 5.18 in 2023, and 4.63 in 2024. This gradual decrease suggests a normalization or revaluation of the stock price relative to the underlying net asset value.
- Overall Observations
- There is a general pattern where valuation multiples peaked in 2021 across all metrics and subsequently declined through 2023, with some exceptions. The P/E ratio deviates in 2024, showing a significant increase that contrasts with the declining trend of other ratios such as P/OP, P/S, and P/BV. This divergence may indicate a specific market sentiment affecting earnings expectations or share price independently of operating performance, sales, or book value.
Price to Earnings (P/E)
UnitedHealth Group Inc., historical P/E 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$) | ||||||
| Net earnings attributable to UnitedHealth Group common shareholders (in millions) | 14,405) | 22,381) | 20,120) | 17,285) | 15,403) | |
| Earnings per share (EPS)2 | 15.75 | 24.28 | 21.57 | 18.37 | 16.29 | |
| Share price1, 3 | 468.56 | 498.28 | 484.33 | 478.23 | 334.65 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 29.75 | 20.53 | 22.46 | 26.03 | 20.54 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Abbott Laboratories | 17.46 | 34.57 | 26.76 | 29.13 | 48.49 | |
| CVS Health Corp. | 17.28 | 11.47 | 27.53 | 17.39 | 12.88 | |
| Elevance Health Inc. | 14.85 | 19.80 | 19.20 | 18.13 | 15.87 | |
| Intuitive Surgical Inc. | 87.82 | 74.11 | 64.99 | 59.94 | 87.47 | |
| Medtronic PLC | 27.97 | 30.94 | 23.38 | 46.56 | 26.30 | |
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | 25.63 | 23.36 | 24.57 | 26.88 | 24.48 | |
| P/E Ratio, Industry | ||||||
| Health Care | 37.14 | 29.43 | 21.38 | 21.35 | 30.75 | |
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 2024 Calculation
EPS = Net earnings attributable to UnitedHealth Group common shareholders ÷ No. shares of common stock outstanding
= 14,405,000,000 ÷ 914,712,333 = 15.75
3 Closing price as at the filing date of UnitedHealth Group Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 468.56 ÷ 15.75 = 29.75
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a generally upward trend from 2020 through 2023, increasing from $334.65 to $498.28. In 2024, however, there was a decline to $468.56, representing a reversal of the previous growth trend.
- Earnings Per Share (EPS)
- EPS showed consistent growth from 2020 to 2023, rising from $16.29 to $24.28, indicating improving profitability. In 2024, EPS decreased significantly to $15.75, marking a pronounced drop compared to prior years.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio fluctuated over the period. It increased from 20.54 in 2020 to a peak of 26.03 in 2021, then decreased to 20.53 by 2023. In 2024, the ratio rose sharply to 29.75, the highest level in the five-year span. This suggests that while earnings fell in 2024, the market continued to value the stock relatively highly, possibly due to expected future growth or other factors.
- Overall Analysis
- The data indicates a phase of consistent growth in both share price and earnings up to 2023, followed by a notable decline in earnings in 2024 accompanied by a decrease in share price. Despite this, the P/E ratio's substantial increase in 2024 reflects elevated market expectations or confidence relative to the earnings achieved. This divergence between declining earnings and elevated market valuation may warrant further investigation into external market conditions or company-specific developments influencing investor sentiment.
Price to Operating Profit (P/OP)
UnitedHealth Group Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 914,712,333 | 921,934,109 | 932,846,602 | 940,899,146 | 945,319,404 | |
| Selected Financial Data (US$) | ||||||
| Earnings from operations (in millions) | 32,287) | 32,358) | 28,435) | 23,970) | 22,405) | |
| Operating profit per share2 | 35.30 | 35.10 | 30.48 | 25.48 | 23.70 | |
| Share price1, 3 | 468.56 | 498.28 | 484.33 | 478.23 | 334.65 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 13.27 | 14.20 | 15.89 | 18.77 | 14.12 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Abbott Laboratories | 34.28 | 30.54 | 22.18 | 24.45 | 40.69 | |
| CVS Health Corp. | 9.36 | 6.96 | 14.75 | 10.43 | 6.65 | |
| Elevance Health Inc. | 12.19 | 15.57 | 15.05 | 15.70 | 12.10 | |
| Intuitive Surgical Inc. | 86.83 | 75.42 | 54.49 | 56.11 | 88.37 | |
| Medtronic PLC | 19.98 | 21.20 | 20.48 | 37.44 | 26.29 | |
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | 18.23 | 16.62 | 17.98 | 19.92 | 17.16 | |
| P/OP Ratio, Industry | ||||||
| Health Care | 25.94 | 25.66 | 16.51 | 17.67 | 22.32 | |
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 2024 Calculation
Operating profit per share = Earnings from operations ÷ No. shares of common stock outstanding
= 32,287,000,000 ÷ 914,712,333 = 35.30
3 Closing price as at the filing date of UnitedHealth Group Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 468.56 ÷ 35.30 = 13.27
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a substantial increase from 334.65 US$ in 2020 to a peak of 498.28 US$ in 2023, representing a steady upward trend over the four-year period. However, in 2024, the share price experienced a slight decline to 468.56 US$, indicating some volatility after reaching the highest point.
- Operating Profit Per Share
- Operating profit per share showed consistent growth each year, rising from 23.7 US$ in 2020 to 35.3 US$ in 2024. The increase was steady and accelerated particularly between 2021 and 2023, reflecting improving operational efficiency or profitability on a per-share basis.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio fluctuated over the period, initially rising from 14.12 in 2020 to a high of 18.77 in 2021, suggesting that the share price increased faster than operating profit per share in that year. Subsequently, the ratio declined consistently to 13.27 in 2024, indicating that either the operating profit per share grew faster than the share price or the market valuation became more conservative relative to operating profit.
- Overall Analysis
- The financial data reveal a generally positive trend in operating profitability per share, supported by a substantial increase in the share price through 2023. The declining P/OP ratio from 2021 onward suggests a market adjustment where the share price growth moderated relative to earnings growth. The slight decrease in share price in 2024, despite continued improvement in operating profit per share, may reflect market dynamics or investor sentiment becoming more cautious. Overall, the data indicate strong operational performance accompanied by a maturing market valuation ratio.
Price to Sales (P/S)
UnitedHealth Group Inc., historical P/S 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$) | ||||||
| Revenues, customers (in millions) | 395,076) | 367,533) | 322,132) | 285,273) | 255,639) | |
| Sales per share2 | 431.91 | 398.65 | 345.32 | 303.19 | 270.43 | |
| Share price1, 3 | 468.56 | 498.28 | 484.33 | 478.23 | 334.65 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.08 | 1.25 | 1.40 | 1.58 | 1.24 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Abbott Laboratories | 5.58 | 4.93 | 4.25 | 4.78 | 6.30 | |
| CVS Health Corp. | 0.22 | 0.27 | 0.36 | 0.47 | 0.35 | |
| Elevance Health Inc. | 0.51 | 0.70 | 0.74 | 0.81 | 0.60 | |
| Intuitive Surgical Inc. | 24.42 | 18.71 | 13.81 | 17.89 | 21.29 | |
| Medtronic PLC | 3.18 | 3.72 | 3.72 | 5.57 | 4.36 | |
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.11 | 1.15 | 1.22 | 1.48 | 1.29 | |
| P/S Ratio, Industry | ||||||
| Health Care | 2.61 | 2.72 | 2.48 | 2.65 | 2.59 | |
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 2024 Calculation
Sales per share = Revenues, customers ÷ No. shares of common stock outstanding
= 395,076,000,000 ÷ 914,712,333 = 431.91
3 Closing price as at the filing date of UnitedHealth Group Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 468.56 ÷ 431.91 = 1.08
5 Click competitor name to see calculations.
- Share Price Trend
- The share price increased significantly from 334.65 US dollars in 2020 to a peak of 498.28 US dollars in 2023. However, in 2024, there was a decline to 468.56 US dollars, indicating a recent downward adjustment after steady growth in the prior years.
- Sales Per Share Trend
- Sales per share demonstrated consistent growth over the five-year period. Starting at 270.43 US dollars in 2020, it rose steadily each year, reaching 431.91 US dollars by 2024. This steady increase suggests improving revenue generation on a per-share basis.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio increased from 1.24 in 2020 to its highest point of 1.58 in 2021, indicating that the market was valuing the company's sales more highly relative to that year. Following 2021, the P/S ratio declined consistently to 1.08 by 2024, even as sales per share grew. This suggests that the market’s valuation relative to sales became more conservative despite improving sales figures, possibly reflecting investor caution or shifts in market expectations.
- Overall Insights
- There is a clear pattern of growth in sales per share, indicative of expanding business operations or improved sales efficiency. The share price followed a similar upward trend but has shown a recent decline, which may reflect broader market trends or company-specific factors. The declining P/S ratio since 2021, despite increasing sales, implies that the stock is becoming more reasonably valued relative to sales or that market optimism has diminished slightly over time.
Price to Book Value (P/BV)
UnitedHealth Group Inc., historical P/BV 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$) | ||||||
| Shareholders’ equity attributable to UnitedHealth Group (in millions) | 92,658) | 88,756) | 77,772) | 71,760) | 65,491) | |
| Book value per share (BVPS)2 | 101.30 | 96.27 | 83.37 | 76.27 | 69.28 | |
| Share price1, 3 | 468.56 | 498.28 | 484.33 | 478.23 | 334.65 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 4.63 | 5.18 | 5.81 | 6.27 | 4.83 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Abbott Laboratories | 4.91 | 5.12 | 5.06 | 5.75 | 6.65 | |
| CVS Health Corp. | 1.05 | 1.25 | 1.61 | 1.83 | 1.33 | |
| Elevance Health Inc. | 2.15 | 3.02 | 3.19 | 3.07 | 2.19 | |
| Intuitive Surgical Inc. | 12.41 | 10.01 | 7.78 | 8.59 | 9.53 | |
| Medtronic PLC | 2.05 | 2.26 | 2.24 | 3.26 | 2.48 | |
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | 3.51 | 3.64 | 3.75 | 4.16 | 3.51 | |
| P/BV Ratio, Industry | ||||||
| Health Care | 5.48 | 5.44 | 4.90 | 5.07 | 4.90 | |
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 2024 Calculation
BVPS = Shareholders’ equity attributable to UnitedHealth Group ÷ No. shares of common stock outstanding
= 92,658,000,000 ÷ 914,712,333 = 101.30
3 Closing price as at the filing date of UnitedHealth Group Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 468.56 ÷ 101.30 = 4.63
5 Click competitor name to see calculations.
The analysis of the provided financial data reveals several key trends and patterns over the five-year period from 2020 to 2024.
- Share Price
- The share price exhibited a strong upward trend from 2020 through 2023, increasing from $334.65 in 2020 to a peak of $498.28 in 2023. However, in 2024, the share price declined slightly to $468.56, indicating a minor correction or reduced investor enthusiasm relative to the previous year.
- Book Value Per Share (BVPS)
- BVPS showed consistent year-over-year growth throughout the entire period. Starting at $69.28 in 2020, it rose steadily each year, reaching $101.30 by 2024. This steady increase reflects strengthening equity per share, which is suggestive of retained earnings growth and/or capital appreciation.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio displayed an initial rising trend from 4.83 in 2020 to 6.27 in 2021, suggesting increasing market valuation relative to the company's book value. After 2021, the ratio gradually declined each year, falling to 4.63 by 2024. This decreasing trend indicates that while the share price remained relatively high, the growth in book value outpaced share price appreciation in the latter years, possibly reflecting a normalization of market valuations or a reassessment of growth expectations.
Overall, the data show a company with improving fundamental equity value per share and a share price that grew significantly before stabilizing and slightly retreating. The declining P/BV ratio in the final years may imply a shift towards more conservative market valuation compared to the earlier enthusiasm seen in 2021.