UnitedHealth Group Incorporated (UNH) Fair Value & PE Analysis
Medical - Healthcare Plans · NYSE
Current Price
$408.52
PE Ratio (TTM)
30.9x
Intrinsic Value
$614.94
+33.6% margin of safety
What Is UnitedHealth Group Incorporated's Fair Value?
As of 2026-06-12, applying a 31.0x earnings multiple to UnitedHealth Group Incorporated's (UNH) earnings per share of $13.24 yields a fair value estimate of $614.94 per share, versus a market price of $408.52.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $518.53 to $723.69. 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 our PE model works · Recalculate in PE mode · UNH intrinsic value (DCF view)
Is UnitedHealth Group Incorporated (UNH) Overvalued?
At $408.52, UNH trades below its PE-based fair value estimate by a wide margin. By this model the stock looks cheap relative to its earnings power, but check whether earnings are sustainable before reading too much into it.
COMPETITIVE MOAT
↑Scale and Network Effects
UNH's massive scale in both insurance and healthcare services creates significant network effects. This allows for better negotiation power with providers and a wider array of plan options for employers and individuals.
↑Data Analytics and Technology
Optum's advanced data analytics capabilities provide a competitive edge in managing costs and improving patient outcomes. This technological infrastructure is difficult for competitors to replicate.
↑Diversified Business Model
The combination of insurance (UnitedHealthcare) and health services (Optum) creates a resilient and diversified business. This synergy allows for cross-selling opportunities and better control over the healthcare value chain.
INVESTMENT RISKS
↓Regulatory and Political Uncertainty
Changes in healthcare policy, government regulations, and political shifts can significantly impact UNH's profitability and business operations. This is a constant overhang for the entire industry.
↓Rising Medical Costs
Unforeseen increases in healthcare utilization and costs can pressure profit margins for insurers. While recent trends are softer, this remains a persistent industry challenge.
↓Competition and Market Saturation
The healthcare insurance market is highly competitive, with established players and new entrants vying for market share. Intense competition can lead to pricing pressures and slower growth.
Base case
UNH base case PE valuation
Intrinsic Value
$614.94
Margin of safety
+33.6%
Expected annual return
+8.5%
Base case assumptions: 16.1% annual earnings growth, 31x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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)
30.9x
PEG Ratio
n/m
Earnings Yield
3.24%
ROE (TTM)
12.4%
Revenue/Share (TTM)
$494.19
Dividend Yield
2.19%
Debt/Equity
0.75x
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 30.9x combined with a PEG ratio of -0.69 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 (30.9x) against the Medical - Healthcare Plans median to assess relative pricing, (2) check the PEG ratio (-0.69) 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 -0.69, calculated by dividing the PE ratio (30.9x) 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 the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.