Union Pacific Corporation (UNP) 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

-47.9%

$160.36

vs $307.58 price

Levered DCF

$125.63

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.45

Safe zone

Rating

B+

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	19.26×	20.54×	23.46×	18.42×	25.24×	26.36×	21.5×	17.39×
P/B	7.42×	8.2×	10.12×	10.6×	11.63×	8.32×	7.02×	5.08×
P/S	5.59×	5.71×	6.2×	5.18×	7.55×	7.22×	5.86×	4.55×
EV / EBITDA	12.95×	13.64×	15.37×	12.94×	16.49×	16.22×	13.93×	11.56×
Gross margin	59.4%	45.5%	43.7%	45.0%	48.2%	47.0%	44.3%	41.8%
Operating margin	40.1%	40.1%	37.7%	39.9%	42.8%	40.1%	39.4%	37.3%
Net margin	29.1%	27.8%	26.4%	28.1%	29.9%	27.4%	27.3%	26.1%
Current ratio	0.91×	0.77×	0.81×	0.72×	0.62×	1.01×	0.79×	0.9×
Debt / equity	1.72×	1.92×	2.31×	2.87×	2.22×	1.67×	1.49×	1.1×
Interest coverage	7.52×	7.65×	6.78×	7.8×	8.07×	6.87×	8.15×	9.79×
Dividend yield	2.4%	2.3%	2.1%	2.4%	1.7%	1.9%	2.0%	2.2%
Payout ratio	45.3%	47.6%	49.7%	45.1%	42.9%	49.1%	43.9%	38.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	38.7%	39.9%	43.1%	57.5%	46.1%	31.5%	32.7%	29.2%
Return on invested capital	11.7%	11.6%	11.0%	12.4%	11.9%	10.1%	11.1%	11.7%
Return on assets	10.2%	10.0%	9.5%	10.7%	10.3%	8.6%	9.6%	10.1%
Free cash flow yield	4.0%	4.3%	3.2%	4.5%	3.7%	4.0%	4.1%	5.1%
Earnings yield	5.2%	4.9%	4.3%	5.4%	4.0%	3.8%	4.7%	5.7%
Enterprise value	$167.6B	$170B	$182.8B	$162.9B	$195.2B	$167.6B	$153.4B	$124.9B
Net debt / EBITDA	2.36×	2.52×	2.79×	2.7×	2.58×	2.57×	2.38×	1.96×
Cash conversion cycle (days)	27	26	28	27	25	29	27	24