Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 7.21%, lower than industry average of 13.50%.

Growth Trajectory

Profitability

In the growth phase company makes 6.94% profit on every dollar of sales, higher than industry average of 3.51%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.95% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
371.00B USD
Equity Value
313.90B USD
FCF Yield
87.81%
Average ROIC
17.12%
Cost of Capital
8.26%
P/E Ratio
13.55x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues422.82B USD400.28B USD
Operating Income or EBIT30.75B USD32.29B USD
Interest Expense4.10B USD3.91B USD
Book Value Of Equity94.72B USD92.66B USD
Book Value Of Debt79.19B USD76.90B USD
Cash and Marketable Securities32.02B USD29.11B USD
Number of Shares Outstanding905M--
Minority interests9.93B USD0 USD
Current Stock Price350.13 USD--
Effective Tax Rate24.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-7.87%
5.63%Company
vs
13.49%Industry
Below Industry
Operating Margin
+3.76%
7.27%Company
vs
3.50%Industry
Above Industry
UnitedHealth Group Incorporated demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 56% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 207.94B USD Add
Present Value (Cash Flow Over Next 10 Years) 163.06B USD Add
Value of Operating Assets 371.00B USD Sub-total
Debt 79.19B USD Subtract
Minority Interests 9.93B USD Subtract
Cash 32.02B USD Add
Value of Equity 313.90B USD Sub-total
Number of Shares 905.00M shares Divisor
Estimated Value per Share (Fair Value) 346.85 USD Total
Current Market Price 350.11 USD Reference

Financial Projections

Total FCF Present Value
163.06B USD
Avg Revenue Growth
5.49%
Avg Operating Margin
6.86%
Avg ROIC
17.12%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue441.12B USD472.93B USD507.03B USD543.59B USD582.79B USD621.77B USD660.12B USD697.38B USD733.10B USD766.82B USD802.09B USD
Growth Rate 4.33% 7.21% 7.21% 7.21% 7.21% 6.68% 6.16% 5.64% 5.12% 4.59% 4.59%
PROFITABILITY
Operating Income32.08B USD33.34B USD35.19B USD37.13B USD39.16B USD41.78B USD44.36B USD46.86B USD49.26B USD51.53B USD53.90B USD
Operating Margin 7.27% 7.05% 6.94% 6.83% 6.72% 6.72% 6.72% 6.72% 6.72% 6.72% 6.72%
EBIT (1-tax)24.38B USD25.34B USD26.74B USD28.21B USD29.76B USD31.67B USD33.53B USD35.33B USD37.04B USD38.64B USD40.42B USD
CASH FLOW
Reinvestment6.95B USD7.45B USD7.99B USD8.57B USD8.52B USD2.61B USD2.54B USD2.43B USD2.30B USD2.40B USD21.05B USD
Free Cash Flow17.42B USD17.88B USD18.75B USD19.64B USD21.24B USD29.05B USD30.99B USD32.89B USD34.74B USD36.24B USD19.36B USD
Terminal Value--------------------457.82B USD
Present Value16.14B USD15.35B USD14.90B USD14.47B USD14.49B USD18.33B USD18.05B USD17.66B USD17.17B USD16.46B USD—
EFFICIENCY
ROIC 17.18% 17.02% 17.11% 17.17% 17.21% 17.46% 18.22% 18.94% 19.60% 20.20% 8.83%
Cost of Capital 7.94% 7.94% 7.94% 7.94% 7.94% 8.12% 8.30% 8.47% 8.65% 8.83% 8.83%
Sales/Capital 4.57x 4.57x 4.57x 4.57x 4.57x 14.64x 14.64x 14.64x 14.64x 14.64x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)