UnitedHealth Group Incorporated (UNH) Fair Value & PE Analysis
Medical - Healthcare Plans · NYSE
Current Price
$410.39
PE Ratio (TTM)
23.4x
Intrinsic Value
$393.99
-4.2% margin of safety
What Is UnitedHealth Group Incorporated's Fair Value?
As of 2026-10-27, applying a 23.1x earnings multiple to UnitedHealth Group Incorporated's (UNH) earnings per share of $17.73 yields a fair value estimate of $393.99 per share, versus a market price of $410.39.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $323.22 to $475.19. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · UNH intrinsic value (DCF view)
Is UnitedHealth Group Incorporated (UNH) Overvalued?
At $410.39, UNH trades about 4.2% above its PE-based fair value estimate, a modest premium over the applied earnings multiple. Check whether earnings growth justifies the price.
COMPETITIVE MOAT
↑Vast Network and Scale
UNH's extensive network of providers and members creates significant scale advantages. This scale allows for better negotiation power and operational efficiencies.
↑Data Analytics and Insights
Proprietary data analytics capabilities provide deep insights into healthcare costs and outcomes. This informs pricing, risk management, and product development.
↑Integrated Care Delivery
Optum's integration of health services, technology, and data creates a sticky ecosystem. This offers a comprehensive solution for payers and providers.
INVESTMENT RISKS
↓Medical Cost Inflation
Rising healthcare costs can pressure margins if not effectively managed through pricing and efficiency gains. This is a persistent challenge in the industry.
↓Cybersecurity Threats
As a large holder of sensitive patient data, UNH is a prime target for cyberattacks. A breach could lead to significant financial and reputational damage.
↓Execution Risk in Integration
Successfully integrating acquisitions and new technologies is crucial for maintaining competitive advantage. Any missteps could hinder growth and profitability.
Base case
UNH base case PE valuation
Intrinsic Value
$393.99
Margin of safety
-4.2%
Expected annual return
-0.8%
Base case assumptions: 4.5% annual earnings growth, 23.15x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-27.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the UNH PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for UnitedHealth Group Incorporated respond.
Open PE Calculator for UNHCompany Overview
UnitedHealth Group Incorporated (UNH) operates as a comprehensive healthcare enterprise across the United States, structuring its diverse services into four key divisions: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment provides a wide array of health benefit plans and consumer-focused services. These offerings cater to a broad spectrum of clients, including large national corporations, public sector employers, mid-sized and small businesses, and individual consumers. It also delivers specialized health coverage and wellness programs tailored for individuals aged 50 and older, addressing their needs for preventive and acute care, chronic disease management, and other age-specific health issues. This division further encompasses Medicaid plans, children's health insurance, dental benefits, and various hospital and clinical services. Optum Health focuses on delivering direct healthcare solutions and management services. It facilitates access to networks of specialist care providers, offers health management programs, direct care delivery, consumer engagement initiatives, and financial services. Its diverse clientele includes individuals (served directly through care systems), employers, insurance payers, and government organizations. Optum Insight specializes in providing technology, information, and consulting services to the healthcare industry. Its offerings include software and data products, advisory consulting arrangements, and outsourced managed services. Clients span hospital systems, physicians, health plans, governmental bodies, life sciences companies, and other relevant organizations. Finally, Optum Rx handles the company's pharmaceutical care services. This segment manages retail pharmacy networks, provides home prescription delivery, and offers specialty and compounding pharmacy capabilities. Leveraging its purchasing power and clinical expertise, Optum Rx also develops advanced programs related to step therapy, formulary management, medication adherence, and integrated disease and drug therapy management. UnitedHealth Group Incorporated, founded in 1977, has its corporate headquarters located in Minnetonka, Minnesota.
Financial Metrics — UNH PE Stock Valuation Data
PE Ratio (TTM)
23.4x
PEG Ratio
n/m
Earnings Yield
4.32%
ROE (TTM)
16.1%
Revenue/Share (TTM)
$498.51
Dividend Yield
2.21%
Debt/Equity
0.71x
Frequently Asked Questions
What is the PE ratio of UNH?
The trailing twelve-month PE ratio of UNH reflects how much investors pay per dollar of UnitedHealth Group Incorporated's earnings. This metric is most useful when compared to Medical - Healthcare Plans peers and the company's own historical range.
Is UNH overvalued based on PE ratio?
UNH's PE of 23.4x combined with a PEG ratio of -2.62 provides a growth-adjusted perspective. UNH has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Healthcare Plans, a DCF analysis may be more appropriate.
How do I value UNH stock using PE ratio?
To value UnitedHealth Group Incorporated using PE: (1) Compare the current PE (23.4x) against the Medical - Healthcare Plans median to assess relative pricing, (2) check the PEG ratio (-2.62) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of UNH?
UNH's PEG ratio is -2.62, calculated by dividing the PE ratio (23.4x) by the expected earnings growth rate. Because UNH has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for UNH stock valuation?
PE ratio gives a quick relative read — how UNH is priced versus Medical - Healthcare Plans peers. DCF provides an absolute value based on projected free cash flows. For UNH, with a strong ROE of 16.1%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See UNH DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value UNH with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-27. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.