MMarketMath

UNH

StalwartQuality: Medium (58/100)

UnitedHealth Group · Health Care · Managed Health Care

$398.76

52w 255.97 – 461.62

20y monthly, adjusted

Mkt cap

$357.9B

P/E

29.0

P/FCF

21.8

FCF yield

4.6%

ROE

12.0%

Shldr yield

3.8%

div 2.3% + bb 1.6%

What today's price assumes

At $357.9B, the market is pricing in 8.9% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 7.0% per year — the price asks for acceleration beyond the historical record.

Simple DCF per-share range: $273 · $340 · $423 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 12.8× across 19 years, UNH would trade near $280/share (25th–75th percentile: $165–$327); it trades at 18.2× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+11.4%

Rev 5y

+11.7%

Rev 10y

+11.0%

EPS 5y

−3.8%

EPS 10y

+8.2%

FCF 5y

−4.4%

FCF 10y

+7.0%

Fundamentals

Fiscal 2007–2025, from SEC filings

Revenue

2007: $75.4B
2008: $81.2B
2009: $87.1B
2010: $94.2B
2011: $101.9B
2012: $110.6B
2013: $122.5B
2014: $130.5B
2015: $157.1B
2016: $184.8B
2017: $201.2B
2018: $226.2B
2019: $242.2B
2020: $257.1B
2021: $287.6B
2022: $324.2B
2023: $371.6B
2024: $400.3B
2025: $447.6B
$0$200.0B$400.0B
07
11
15
19
23

Net income

2007: $4.7B
2008: $3.0B
2009: $3.8B
2010: $4.6B
2011: $5.1B
2012: $5.5B
2013: $5.6B
2014: $5.6B
2015: $5.8B
2016: $7.0B
2017: $10.6B
2018: $12.0B
2019: $13.8B
2020: $15.4B
2021: $17.3B
2022: $20.1B
2023: $22.4B
2024: $14.4B
2025: $12.1B
$0$10.0B$20.0B
07
11
15
19
23

Free cash flow

2007: $5.0B
2008: $3.4B
2009: $4.9B
2010: $5.4B
2011: $5.9B
2012: $6.1B
2013: $5.7B
2014: $6.5B
2015: $8.2B
2016: $8.1B
2017: $11.6B
2018: $13.7B
2019: $16.4B
2020: $20.1B
2021: $19.9B
2022: $23.4B
2023: $25.7B
2024: $20.7B
2025: $16.1B
$0$10.0B$20.0B
07
11
15
19
23

Diluted shares (lower is better)

2007: 1.4B
2008: 1.2B
2009: 1.2B
2010: 1.1B
2011: 1.1B
2012: 1.0B
2013: 1.0B
2014: 986.0M
2015: 967.0M
2016: 968.0M
2017: 985.0M
2018: 983.0M
2019: 966.0M
2020: 961.0M
2021: 956.0M
2022: 950.0M
2023: 938.0M
2024: 929.0M
2025: 911.0M
0500.0M1.0B
07
11
15
19
23

Margins

4%6%8%07101316192225
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2007: $6.6B
2008: $2.7B
2009: $1.8B
2010: $3.0B
2011: $3.6B
2012: $3.9B
2013: $4.2B
2014: $5.4B
2015: $3.0B
2016: $3.5B
2017: $4.3B
2018: $7.8B
2019: $9.4B
2020: $8.8B
2021: $10.3B
2022: $13.0B
2023: $14.8B
2024: $16.5B
2025: $13.5B
$0$5.0B$10.0B$15.0B
07
11
15
19
23

Cash vs long-term debt

$20.0B$40.0B$60.0B07101316192225
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $92.9B
Q3'23: $92.4B
Q4'23: $94.4B
Q1'24: $99.8B
Q2'24: $98.9B
Q3'24: $100.8B
Q4'24: $100.8B
Q1'25: $109.6B
Q2'25: $111.6B
Q3'25: $113.2B
Q4'25: $113.2B
Q1'26: $111.7B
Q2'26: $112.0B
$0$50.0B$100.0B
23
24
24
25
26

Net income by quarter

Q2'23: $5.5B
Q3'23: $5.8B
Q4'23: $5.5B
Q1'24: −$1.4B
Q2'24: $4.2B
Q3'24: $6.1B
Q4'24: $5.5B
Q1'25: $6.3B
Q2'25: $3.4B
Q3'25: $2.3B
Q4'25: $10.0M
Q1'26: $6.3B
Q2'26: $5.5B
$0$2.0B$4.0B$6.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$112.0B+0.4%$5.5B+61.0%6.04$11.1B
Q1'26$111.7B+2.0%$6.3B−0.2%6.90$8.9B
Q4'25 *$113.2B+12.3%$10.0M−99.8%0.05$1.1B
Q3'25$113.2B+12.2%$2.3B−61.2%2.59$5.9B
Q2'25$111.6B+12.9%$3.4B−19.2%3.74$7.2B
Q1'25$109.6B+9.8%$6.3B6.85$5.5B
Q4'24 *$100.8B+6.8%$5.5B+1.6%5.99$2.4B
Q3'24$100.8B+9.2%$6.1B+3.7%6.51$13.9B
Q2'24$98.9B+6.4%$4.2B−23.0%4.54$6.7B
Q1'24$99.8B+8.6%−$1.4B−125.1%-1.53$1.1B
Q4'23 *$94.4B+14.1%$5.5B+14.6%5.85−$5.2B
Q3'23$92.4B+14.2%$5.8B+11.0%6.24$6.9B
Q2'23$92.9B+15.6%$5.5B+8.0%5.82$11.0B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+11.4%+11.7%+11.0%+11.0%
Operating cash flow−9.1%−2.3%+7.3%+7.9%
Free cash flow−11.8%−4.4%+7.0%+7.6%
EPS (diluted)−14.5%−3.8%+8.2%+8.1%
Equity+7.1%+7.9%+11.5%+9.5%
LT debt+9.9%+13.4%+11.1%+15.2%
Diluted shares−1.4%−1.1%−0.6%−1.4%
Stock price−3.8%+0.9%+13.2%+17.1%

$100, 3 years ago

$89vs $176 in SPY

-3.8% vs 20.7%/yr

$100, 5 years ago

$105vs $181 in SPY

0.9% vs 12.6%/yr

$100, 10 years ago

$346vs $412 in SPY

13.2% vs 15.2%/yr

$100, 15 years ago

$1,070vs $813 in SPY

17.1% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$-0.64

−$33.6B created / $52.8B retained

Last 10 years

$1.73

$164.3B created / $94.7B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

11.4%

OCF ÷ (equity + debt)

OCF / EV yield

4.9%

MC vs 10× OCF

1.78

≤1 = priced under 10× OCF

Debt / FCF

4.5y

SBC / FCF

6.0%

Owner earnings

$15.1B

OCF − capex − SBC

OE yield

4.3%

Share count 5y

−2.2%

per year; negative = buybacks

Capital intensity

2.4%

net PP&E ÷ revenue

Sales efficiency

$0.01

new PP&E per $1 new revenue, 5y

Growth engine (5y): reinvested 47.7% of operating cash flow at an incremental return of -4.3% — an organically fundable growth rate of about -2.0% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

14 of 26 checks pass · 54%. Checks with structurally missing inputs are excluded.

Growth & Consistency

4/7

  • Revenue growth

    11.7% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    -3.8% · 5y CAGR ≥ 5%

    fail
  • FCF growth

    -4.4% · 5y CAGR ≥ 5%

    fail
  • Revenue rises consistently

    9 of 9 · up in ≥ 7 of last 10 years

    pass
  • FCF consistently positive

    10 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    10 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    -2.3% vs 11.7% · OCF CAGR ≥ 0.9× revenue CAGR

    fail

Profitability

2/6

  • Net margin

    2.7% · ≥ 8%

    fail
  • Operating margin

    4.2% · ≥ 10%

    fail
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    12.0% · ≥ 12%

    pass
  • Cash ROIC

    11.4% · ≥ 12%

    fail
  • FCF margin

    3.6% · ≥ 5%

    fail
  • Earnings back their cash

    OCF $19.7B vs NI $12.1B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

2/5

  • Debt payable from cash flow

    4.5y · LT debt ≤ 3× FCF

    fail
  • Cash cushion

    34% · cash ≥ 50% of LT debt

    fail
  • Leverage

    0.72 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $100.1B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    21% · interest ≤ 15% of operating income

    fail

Capital Allocation

4/4

  • Share count flat or shrinking

    -2.2% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    6% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    84% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    10 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

2/4

  • FCF yield

    4.6% · ≥ 3%

    pass
  • Earnings multiple

    29.0 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    8.9% vs 7.0% · implied FCF growth ≤ historical FCF CAGR

    fail
  • Shareholder yield

    3.8% · dividends + buybacks ≥ 2% of market cap

    pass

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
2025447,56718,96412,05613.2319,6973,62216,0757,9165,54597124,36572,320100,090911
2024400,27832,28714,40515.5124,2043,49920,7057,5339,0001,01825,31272,35998,268929
2023371,62232,35822,38123.8629,0683,38625,6826,7618,0001,05925,42758,26394,421938
2022324,16228,43520,12021.1826,2062,80223,4045,9917,00092523,36554,51381,450950
2021287,59723,97017,28518.0822,3432,45419,8895,2805,00080021,37542,38375,045956
2020257,14122,40515,40316.0322,1742,05120,1234,5844,25067916,92138,64868,328961
2019242,15519,68513,83914.3318,4632,07116,3923,9325,50069710,98536,80860,436966
2018226,24717,34411,98612.1915,7132,06313,6503,3204,50063810,86634,58154,319983
2017201,15915,20910,55810.7213,5962,02311,5732,7731,50059711,98128,83549,833985
2016184,84012,9307,0177.259,7951,7058,0902,2611,28048510,43025,77738,177968
2015157,10711,0215,8136.019,7401,5568,1841,7861,20040610,92325,33133,725967
2014130,47410,2745,6195.708,0511,5256,5261,3624,0083647,49516,00732,454986
2013122,4899,6235,6255.506,9911,3075,6841,0563,1703317,27614,89132,1491,023
2012110,6189,2545,5265.287,1551,0706,0858203,0844218,40614,04131,1781,046
2011101,8628,4645,1424.736,9681,0675,9016512,9944019,42910,65628,2921,087
201094,1557,8644,6344.106,2738785,3954492,5173269,1238,66225,8251,131
200987,1386,3593,8223.245,6257394,886361,8013349,8009,00923,6061,179
200881,1865,2632,9772.404,2387913,447372,6843057,42611,33820,7801,241
200775,4317,8494,6543.425,8778715,006406,5995058,86520,0631,361

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.