Using the PEG framework with analyst consensus forward EPS growth of 22.9% plus 3.3% dividend yield, UnitedHealth Group Incorporated has a fair value of $409.15 based on NTM EPS (FY2026) of $17.85. The current PEG ratio is 0.66.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 19.7% |
| Dividend Yield | +3.3% |
| Adjusted Growth (clamped 8–25%) | 22.9% |
| Fair P/E | 22.9x |
| NTM EPS (FY2026) | $17.85 |
| Fair Value | $409.15 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $13.23 | — | — |
| FY2026E | $17.85 | +35.0% | 19 |
| FY2027E | $19.80 | +10.9% | 20 |
| FY2028E | $23.78 | +20.1% | 15 |
| FY2029E | $28.68 | +20.6% | 11 |
| FY2030E | $32.46 | +13.2% | 7 |
5Y Forward EPS CAGR: 19.7%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $17.3B | $18.08 | — |
| FY2022 | $20.1B | $21.18 | +17.1% |
| FY2023 | $22.4B | $23.86 | +12.7% |
| FY2024 | $14.4B | $15.51 | -35.0% |
| FY2025 | $12.1B | $13.23 | -14.7% |
4Y Historical EPS CAGR: -7.5%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.