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UnitedHealth Group Incorporated — Intrinsic Value & Fair Price

UNH
NYSEHealthcareMedical - Healthcare PlansCIK 0000731766unitedhealthgroup.comAbout UNH
Last close · Oct 16, 2026401.43−5.24 (−1.29%)
Market cap$360.3B
Model value · DCF · Perpetuity growth · 5y
336.30
UnitedHealth closed at $401.43 — overvalued by 19% vs model.
198.39the model's range885.51

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
138.59 – 477.47
Wall St. target
500.00 20% below
Above model, 1y
16 of 21 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
2.26%
Past 2 years
low 1.27%high 3.58%
Dividends per share, a year at a time
$5.40Sep ’21$6.20Sep ’22$7.06Sep ’23$7.96Sep ’24$8.62Sep ’25$9.06TTM
Dividends / free cash flow, FY2025
49.2%
Raised
16 years in a row
Growth, 5 yrs
10.9% a year
Last change
+5.0% · Jun 2026
Every payment, with ex-dates · latest $2.32, paid Sep 22, 2026

Research on UNH

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How it is valued

Valued asMature & stable
Low/slowing growth (~10% recent)Thin margins (2.7% net margin)Pays dividendsHighly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for mature companies
P/E
30.3×
EV / EBITDA
18.0×
FCF yield
4.4%
Dividend yield, TTM
2.26%
Beta
0.61
Cost of capital (WACC)
7.50%
On the lists: #30 Largest companies
Full financials

Analyst actions

third-party, quoted
10-16Bernstein · target500.00
10-16H.C. Wainwright · target500.00
10-16Stephens · target500.00
07-16Baird · “Neutral” from “Underperform”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
Side by side:vs ELVvs CVSvs HUM

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just UNH. No account.

About UnitedHealth

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.

CEO
Stephen J. Hemsley
Headquarters
Eden Prairie, MN
Employees
390,000
IPO
1984-10-17
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.