Home Reports Company & Industry Overviews How Does UNH’s Valuation Look in October?

How Does UNH’s Valuation Look in October?

UnitedHealth Group’s valuation

UnitedHealth Group is a leading managed healthcare firm in the United States. It offers healthcare products and insurance services through its two divisions: UnitedHealthcare and Optum. The company recently acquired Genoa Healthcare to expand its OptumRx business.

How Does UNH’s Valuation Look in October?

On October 3, UnitedHealth Group had a market capitalization of $260.7 billion, and its stock closed at $270.90. The stock traded at its 52-week high on the day. On October 3, UnitedHealth Group was trading at a forward PE (price-to-earnings) ratio of 19x, and its last-12-month PE ratio was 25.1x.

UnitedHealth Group’s forward PE multiple is above the industry average of 16.5x. Generally, a high forward PE is a sign of an overvalued stock, or it might indicate a high growth stock.

PEG ratio

We’ll look at a growth-neutral valuation metric, the PEG (price-to-earnings-to-growth) ratio, for UNH’s valuation. It is a key valuation multiple used for the comparison of companies with different growth profiles in different industries. On October 3, UNH had a 12-month forward PEG ratio of ~1.05x. Peers Aetna (AET), Humana (HUM), and Cigna (CI) had forward PEG ratios of 1.5x, 1.0x, and 0.75x, respectively. Their forward PEs were 16.7x, 19.9x, and 14.2x, respectively.

Be sure to check out all the data we’ve added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data, as well as dividend information. Take a look!