Using the industry peer median P/E multiple (trailing + forward), UnitedHealth Group Incorporated (UNH) has a fair value of $249.56 based on 8 comparable companies in the Medical - Healthcare Plans industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| UnitedHealth Group IncorporatedUNH | 243,798 | 20.3x | 15.0x |
| Merck & Co., Inc.MRK | 294,783 | 16.4x | 23.3x |
| Abbott LaboratoriesABT | 182,961 | 28.3x | 18.6x |
| Thermo Fisher Scientific Inc.TMO | 182,666 | 27.7x | 20.0x |
| Novo Nordisk A/SNVO | 161,919 | 10.9x | 12.1x |
| CVS Health CorporationCVS | 91,014 | 51.5x | 10.0x |
| Cigna CorporationCI | 72,693 | 12.3x | 9.0x |
| Elevance Health Inc.ELV | 65,020 | 11.7x | 11.4x |
| Humana Inc.HUM | 21,005 | 17.7x | 18.9x |
| Industry Median | 17.0x | 15.3x | |
| (*) Profit after tax | 12,056 | 16,248 | |
| Equity Value | 205,428 | 248,772 | |
| (/) Outstanding shares | 910 | 910 | |
| Fair Price | $226 | $273 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.