Highly Regarded

Is UnitedHealth Group Inc. (UNH) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Healthcare sector peers in our coverage

24% Discount TTM fundamentals · sector averages from covered peers

UNH trades at 21.8× TTM earnings — a 24% discount to its Healthcare sector average of 28.6× in our coverage.

The Numbers

P/E (TTM)

21.8×

Sector avg: 28.6×

P/S (TTM)

0.9×

Sector avg: 8.0×

Market Cap

$378.69B

EPS (TTM): $19.19

Revenue (TTM)

$435.16B

Net income: $18.37B

Healthcare Peer Comparison

How UNH's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
UNH This page $418.05 21.8×
LLY $1201.42 58.8×
JNJ $259.33 25.0×
MRK $126.81 16.8×
PFE $23.74 13.8×

Is the Discount Justified?

July 6, 2026

UnitedHealth Group's P/E of 21.7x is below the healthcare sector average of 27.2x. This discount could be influenced by ongoing regulatory scrutiny within the healthcare industry or specific dynamics within its diverse business segments. Despite this, the company delivered strong Q1 2026 results, with adjusted EPS beating expectations and revenue growing 2% year-over-year. Management has raised its full-year 2026 adjusted EPS outlook and announced a $2 billion share buyback, signaling confidence in future performance. Strategic investments in modernization and AI are also underway, aiming to enhance value and efficiency across its healthcare services. These factors, combined with its scale, provide a robust operational backdrop.

Sources

Frequently Asked Questions

Is UNH overvalued or undervalued?
On trailing-twelve-month earnings, UNH trades at 21.8x versus a Healthcare sector average of 28.6x in our coverage — a 23.8% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing UNH with its own Healthcare peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Healthcare names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Healthcare peers

JNJ PFE ABBV LLY MRK