* Note: Prices are in Million (M) USD.
Description:
UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services. In 2020, it was the second-largest healthcare company (behind CVS Health) by revenue with $257.1 billion, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group's overall revenue.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $32,020 M
Debt : $79,193 M
EBITDA : $35,953 M
Net Debt (Debt - Cash): $47,173 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Healthcare
Industry: Health care plans
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 18.78
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $11,026 M
Average Revenue: $178,681 M
Revenue Converted To Free Cash Flow (%): 6.2%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $400,278 M
Revenue 4 Years Ago (2020-12-31): $257,141 M
Last 5 Years Average Revenue Growth: 11%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $929 M
Share Count 5 Years Ago (2020-12-31): $961 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $17.00
Trailing 12-Month Earnings Per Share (EPS): $16.00
Average Earnings Per Share (EPS): $16.50
Dividend Per Share (DPS): $9
Payout Ratio: 52%
Dividend Yield: 3%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 19.8%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $310
52-Week Low: $235
Threshold Price (15% Above 52-Week Low): $270
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $276,104 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above UnitedHealth Group Incorporated (UNH) stock.
Last 20 Years Avg PE 17.45, Fair Value PE 15, Industry Based PE 18, Growth Based PE 11, RCFC Based PE 14.94, ROE Based PE 25.87, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 17.05. Value-Trades has assined P/E value 17.05. Since an average (Current Year EPS + Next Year EPS) earning per share is $16.5.
The fair value of UnitedHealth Group Incorporated (UNH) stock should be (17.05 x $16.5) = $281.31.
