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

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

22% Discount TTM fundamentals · sector averages from covered peers

UNH trades at 22.2× TTM earnings — a 22% discount to its Healthcare sector average of 28.4× in our coverage.

The Numbers

P/E (TTM)

22.2×

Sector avg: 28.4×

P/S (TTM)

0.9×

Sector avg: 7.9×

Market Cap

$386.02B

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)	P/S (TTM)	Market Cap
UNH This page	$426.15	22.2×	0.9×	$386.02B
LLY Eli Lilly and Company	$1178.79	57.7×	17.8×	$1.06T
JNJ Johnson & Johnson	$253.02	24.4×	6.6×	$609.60B
MRK Merck & Co. Inc.	$127.48	16.8×	4.9×	$316.41B
PFE Pfizer Inc.	$25.05	14.6×	2.3×	$142.43B

Is the Discount Justified?

July 12, 2026

UnitedHealth Group's P/E of 22.1x is below the healthcare sector average of 27.1x. The company reported strong Q1 2026 results, with revenues of $111.7 billion and earnings from operations of $9.0 billion, reflecting improved operations. UnitedHealthcare's operating margins expanded in the first quarter. However, the 2026 outlook anticipates a 2% year-over-year decline in revenues due to planned enterprise-wide right-sizing. The company faces rising medical cost trends, including increasing pharmacy costs and catastrophic claims, which could pressure future margins. Additionally, Medicare Advantage membership decreased in Q1 2026 as a result of strategic plan terminations and benefit reductions. UnitedHealth Group is investing in technology, including AI, to enhance performance and drive efficiencies.

Sources

Frequently Asked Questions

Is UNH overvalued or undervalued?

On trailing-twelve-month earnings, UNH trades at 22.2x versus a Healthcare sector average of 28.4x in our coverage — a 21.7% 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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JNJ MRK LLY PFE ABBV