Unitedhealth Stock Valuation

UNH
 Stock
  

USD 546.15  2.45  0.45%   

Do you want to know what the current value of Unitedhealth Group is today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Unitedhealth, is its stock price multiplied by the total number of shares outstanding, calculating Unitedhealth's enterprise value requires a different approach. It uses Unitedhealth's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Unitedhealth Enterprise Value is most likely to increase significantly in the upcoming years. The preceding year's Enterprise Value was reported at 155.48 Billion. The current Tangible Asset Value is estimated to increase to about 64.8 B, while Free Cash Flow is projected to decrease to roughly 5.9 B.
Unitedhealth Group has a current Real Value of $531.6 per share. The regular price of the company is $546.15. At this time, the company appears to be fairly valued. Our model measures the value of Unitedhealth Group from inspecting the company fundamentals such as Shares Outstanding of 941.85 M, return on equity of 24.25 %, and Operating Margin of 8.99 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend locking in undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
Unitedhealth Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Unitedhealth's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Fairly Valued
Today 546.15
Please note that Unitedhealth's price fluctuation is very steady at this time. Calculation of the real value of Unitedhealth Group is based on 3 months time horizon. Increasing Unitedhealth's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Unitedhealth Group is useful when determining the fair value of the Unitedhealth stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Unitedhealth. Since Unitedhealth is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Unitedhealth Stock. However, Unitedhealth's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
529.86
Downside
531.60
Real Value
601.00
Upside
Estimating the potential upside or downside of Unitedhealth Group helps investors to forecast how Unitedhealth stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Unitedhealth more accurately as focusing exclusively on Unitedhealth's fundamentals will not take into account other important factors:
Earnings
Estimates (9)
LowProjected EPSHigh
18.7918.8418.92
Details
Hype
Prediction
LowEstimated ValueHigh
545.69547.43549.17
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
3.693.733.78
Details
21 Analysts
Consensus
LowTarget PriceHigh
440.00503.54575.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Unitedhealth's intrinsic value based on its ongoing forecasts of Unitedhealth's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Unitedhealth's closest peers. When choosing an evaluation method for Unitedhealth Group, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Unitedhealth Investments

21.26 Billion

Unitedhealth Valuation Drivers Correlation

Many accounts on the financial statements of Unitedhealth Group are highly interrelated and sometimes correlated. Consequently, when conducting Unitedhealth's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Unitedhealth
Click cells to compare fundamentals

Unitedhealth Valuation Trend

Knowing Unitedhealth's actual value is paramount for traders to make sound investment determinations. Unitedhealth's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Unitedhealth's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Unitedhealth's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Unitedhealth Market Cap

Unitedhealth Group is rated first in market capitalization category among related companies. Market capitalization of Healthcare Plans industry is at this time estimated at about 2.33 Trillion. Unitedhealth totals roughly 512.08 Billion in market capitalization claiming about 22% of equities under Healthcare Plans industry.
Capitalization  Valuation  Revenue  Workforce  Total debt

Unitedhealth Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Unitedhealth's current stock value. Our valuation model uses many indicators to compare Unitedhealth value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Unitedhealth competition to find correlations between indicators driving Unitedhealth's intrinsic value. More Info.
Unitedhealth Group is rated first in five year return category among related companies. It is rated first in beta category among related companies totaling about  0.57  of Beta per Five Year Return. The ratio of Five Year Return to Beta for Unitedhealth Group is roughly  1.77 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Unitedhealth by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Unitedhealth's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Unitedhealth's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Unitedhealth's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Unitedhealth and how it compares across the competition.

About Unitedhealth Valuation

The stock valuation mechanism determines the current worth of Unitedhealth Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Unitedhealth Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Unitedhealth Group based exclusively on its fundamental and basic technical indicators. By analyzing Unitedhealth's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Unitedhealth's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Unitedhealth. We calculate exposure to Unitedhealth's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Unitedhealth's related companies.
Last ReportedProjected for 2022
Gross Profit39 B42.1 B
Profit Margin 6.01  5.26 
UnitedHealth Group Incorporated operates as a diversified health care company in the United States. UnitedHealth Group Incorporated was incorporated in 1977 and is based in Minnetonka, Minnesota. Unitedhealth operates under Healthcare Plans classification in the United States and is traded on New York Stock Exchange. It employs 350000 people.
Unitedhealth's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Unitedhealth's value is low or high relative to the company's performance and growth projections. Determining the market value of Unitedhealth can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Unitedhealth represents a small ownership stake in the entity. As a stockholder of Unitedhealth, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Unitedhealth Dividends Analysis For Valuation

The current Dividends per Basic Common Share is estimated to increase to 2.31, while Payment of Dividends and Other Cash Distributions is projected to decrease to (2.7 B). . Unitedhealth Earnings per Basic Share are most likely to increase significantly in the upcoming years. The last year's value of Earnings per Basic Share was reported at 18.33. The current Earnings per Diluted Share is estimated to increase to 19.51, while Price to Earnings Ratio are projected to decrease to 22.74.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-2.6 B-2.7 B
Dividend Yield 0.0135  0.0107 
Dividends per Basic Common Share 2.14  2.31 
There are various types of dividends Unitedhealth can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Unitedhealth shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Unitedhealth Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Unitedhealth pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Unitedhealth by the value of the dividends paid out.

Unitedhealth Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Unitedhealth does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.53
Earnings Quarterly Growth18.80%
Revenue Growth12.60%
Payout Ratio31.35%
Enterprise Value To Ebitda19.72
Earnings Growth19.70%
Enterprise Value To Revenue1.77

Unitedhealth Current Valuation Indicators

Valuation refers to the process of determining the present value of Unitedhealth Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Unitedhealth we look at many different elements of the entity such as Unitedhealth's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Unitedhealth's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Unitedhealth's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Unitedhealth, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Unitedhealth's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Unitedhealth's worth.
Also, please take a look at World Market Map. Note that the Unitedhealth Group information on this page should be used as a complementary analysis to other Unitedhealth's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Complementary Tools for Unitedhealth Stock analysis

When running Unitedhealth Group price analysis, check to measure Unitedhealth's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Unitedhealth is operating at the current time. Most of Unitedhealth's value examination focuses on studying past and present price action to predict the probability of Unitedhealth's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Unitedhealth's price. Additionally, you may evaluate how the addition of Unitedhealth to your portfolios can decrease your overall portfolio volatility.
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Is Unitedhealth's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Unitedhealth. If investors know Unitedhealth will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Unitedhealth listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Unitedhealth Group is measured differently than its book value, which is the value of Unitedhealth that is recorded on the company's balance sheet. Investors also form their own opinion of Unitedhealth's value that differs from its market value or its book value, called intrinsic value, which is Unitedhealth's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Unitedhealth's market value can be influenced by many factors that don't directly affect Unitedhealth's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Unitedhealth's value and its price as these two are different measures arrived at by different means. Investors typically determine Unitedhealth value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Unitedhealth's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.