UnitedHealth Group Incorporated (UNH) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-34.0%

$261.50

vs $396.15 price

Levered DCF

$298.96

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

2.63

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	24.95×	32.34×	22.36×	24.61×	27.39×	21.54×	20.2×	20.01×
P/B	3.19×	5.07×	5.64×	6.37×	6.6×	5.07×	4.85×	4.64×
P/S	0.67×	1.17×	1.35×	1.53×	1.65×	1.29×	1.15×	1.06×
EV / EBITDA	15.37×	18.58×	14.93×	16.63×	18.4×	14.16×	13.8×	13.43×
Gross margin	18.5%	22.3%	24.5%	24.6%	24.2%	26.1%	23.8%	23.8%
Operating margin	4.2%	8.1%	8.7%	8.8%	8.3%	8.7%	8.1%	7.7%
Net margin	2.7%	3.6%	6.0%	6.2%	6.0%	6.0%	5.7%	5.3%
Current ratio	0.79×	0.83×	0.79×	0.77×	0.79×	0.74×	0.69×	0.73×
Debt / equity	0.83×	0.83×	0.76×	0.74×	0.64×	0.66×	0.71×	0.71×
Interest coverage	4.74×	8.27×	9.97×	13.59×	14.44×	13.47×	11.55×	12.39×
Dividend yield	2.6%	1.6%	1.4%	1.2%	1.1%	1.4%	1.4%	1.4%
Payout ratio	65.7%	52.3%	30.2%	29.8%	30.5%	29.8%	28.4%	27.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.8%	15.5%	25.2%	25.9%	24.1%	23.5%	24.0%	23.2%
Return on invested capital	8.2%	12.3%	14.3%	14.0%	13.9%	13.1%	13.4%	13.3%
Return on assets	3.9%	4.8%	8.2%	8.2%	8.1%	7.8%	8.0%	7.9%
Free cash flow yield	5.4%	4.4%	5.1%	4.7%	4.2%	6.1%	5.9%	5.7%
Earnings yield	4.0%	3.1%	4.5%	4.1%	3.7%	4.6%	5.0%	5.0%
Enterprise value	$354.4B	$521.5B	$542.5B	$529.4B	$498.1B	$358.3B	$309.3B	$265.6B
Net debt / EBITDA	2.34×	1.84×	1.16×	1.08×	0.91×	1.05×	1.33×	1.3×
Cash conversion cycle (days)	-34	-36	-3	-50	-47	-67	-63	-59