UnitedHealth Group Incorporated (DE) (UNH) Company Bio
UnitedHealth Group is a health and well-being company. The Company's business platforms include UnitedHealthcare and Optum. United Healthcare provides health-care benefits to various customers and markets. The company was founded in 1974 and is based in Minnetonka, Minnesota.
UNH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Unitedhealth Group Inc. To summarize, we found that Unitedhealth Group Inc ranked in the 54th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 12%. The most interesting components of our discounted cash flow analysis for Unitedhealth Group Inc ended up being:
UNH's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 30.84% of tickers in our DCF set.
As a business, Unitedhealth Group Inc experienced a tax rate of about 18% over the past twelve months; relative to its sector (Healthcare), this tax rate is higher than 79.59% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DXCM, CMD, REGN, FONR, and ACIU can be thought of as valuation peers to UNH, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
UnitedHealth Group reported better-than-expected fourth-quarter results despite a spike in pandemic-led healthcare costs. The healthcare giant's 4Q sales rose 7.5% to $65.5 billion year-on-year, exceeding consensus estimates of $65.1 billion. Shares closed at $350.84 on Jan. 20. UnitedHealth (UNH) posted 4Q adjusted earnings of $2.52 per share, which beat analysts’ estimates of $2.40 per share. The company’s 4Q net EPS (earnings per share) of $2.30 fell from the $3.68 posted during the same quarter last year. Its adjusted EPS of $2.52 per share declined from $3.90 in 4Q19. This decline in earnings per share was largely related to higher healthcare costs due to Covid-19, the company said.
UnitedHealth (UNH): Q4 Non-GAAP EPS of $2.52 beats by $0.13; GAAP EPS of $2.30 beats by $0.06.Revenue of $65.47B (+7.5% Y/Y) beats by $490M.MCR ratio of 79.1% vs. consensus of 84%.Operating cost ratio of 16.2% compared to estimate of 16.7%.Shares +0.8% PM.Press Release...