Highly Regarded

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

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

31% Discount TTM fundamentals · sector averages from covered peers

UNH trades at 21.2× TTM earnings — a 31% discount to its Healthcare sector average of 30.5× in our coverage.

The Numbers

P/E (TTM)

21.2×

Sector avg: 30.5×

P/S (TTM)

0.8×

Sector avg: 8.4×

Market Cap

$368.38B

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 $406.67 21.2×
LLY $1252.00 61.3×
JNJ $253.35 24.5×
MRK $145.30 19.2×
PFE $29.43 17.1×

Is the Discount Justified?

October 11, 2026

UnitedHealth Group's P/E of 19.8x is below the healthcare sector average of 27.7x. The company recently reported Q2 2026 results and raised its full-year guidance. However, UNH anticipates a rare decline in 2026 revenue, attributed to strategic exits from unprofitable Medicare Advantage markets and low-margin Medicaid contracts. The healthcare sector is experiencing significant shifts, including increased AI integration, evolving value-based care models, and growth in virtual health. Regulatory scrutiny, such as a class-action lawsuit regarding drug manufacturer assistance and a Texas AG investigation, also presents potential headwinds. These operational adjustments and the dynamic regulatory environment likely contribute to its current valuation.

Sources

Frequently Asked Questions

Is UNH overvalued or undervalued?
On trailing-twelve-month earnings, UNH trades at 21.2x versus a Healthcare sector average of 30.5x in our coverage — a 30.5% 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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ABBV PFE MRK LLY JNJ