UnitedHealth Group Inc (UNH) receives a robust valuation rating of 78 from InvestorsObserver’s information evaluation. The proprietary rating system focuses on the underlying well being of an organization via evaluation of its stock price, earnings, and progress charge. UNH has a greater value than 78% of stocks primarily based on these valuation analytics. Traders primarily centered on buy-and-hold methods will discover the valuation rating related to their targets when making funding selections.
UNH‘s trailing-12-month price to Earnings (PE) ratio of 19.four places it across the historic common of roughly 15. UNH is a common value at its present buying and selling price as traders are paying round what its worth in relation to the corporate’s earnings. UNH‘s trailing-12-month earnings per share (EPS) of 17.41 does justify what it’s presently buying and selling at out there. Trailing PE ratios, nevertheless, don’t think about an organization’s projected progress charge, leading to some corporations having excessive PE ratios because of excessive progress probably attractive traders even when present earnings are low.
UNH‘s 12-month-forward PE to Development (PEG) ratio of 1.62 is taken into account a poor value because the market is overvaluing UNH in relation to the corporate’s projected earnings progress due. UNH‘s PEG comes from its ahead price to earnings ratio being divided by its progress charge. A PEG ratio of 1 represents an ideal correlation between earnings progress and share price. As a consequence of their incorporation of extra fundamentals of an organization’s total well being and specializing in the longer term relatively than the previous, PEG ratios are one of the used valuation metrics by analysts at the moment.
All collectively these valuation metrics paint a fairly poor image for UNH at its present price because of a overvalued PEG ratio regardless of robust progress. The PE and PEG for UNH are worse than the typical of the market leading to a valuation rating of 78.