UNHNEUTRAL

EV/EBITDA

20.2x

Higher than 100% of HEALTHCARE sector peers

Updated 56h ago

Sector Performance

100th percentile

UNH

20.2x

Sector Median

19.8x

Sector Avg

19.8x

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Deep Analysis

UnitedHealth Group’s current EV/EBITDA of 20.2x means that its enterprise value (market cap plus debt minus cash) is 20.2 times its earnings before interest, taxes, depreciation, and amortization — a measure of how richly the market values each dollar of operating profit.

This is slightly above the healthcare sector median of 19.8x, placing the stock at the 100th percentile among peers, meaning it is valued higher than all of them. The trend over the last eight quarters has been stable, with no year-over-year change available and a quarter-over-quarter decline of -1.4% from 20.5x to 20.2x. The combination of a premium valuation relative to the sector with a stable-to-slightly-declining trend suggests limited near-term upside from multiple expansion, but also no acute overvaluation risk if earnings hold. This metric supports the overall NEUTRAL verdict, as the high percentile rank signals elevated expectations, while the stable trend fails to provide a clear bullish or bearish catalyst.

Frequently Asked Questions

What does the EV/EBITDA tell investors about UNH?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does UNH's EV/EBITDA compare to its sector?

UNH's EV/EBITDA of 20.2x compares to a HEALTHCARE sector median of 19.8x, placing it in the 100th percentile.

Who are UNH's closest peers by EV/EBITDA?

The closest HEALTHCARE peers by EV/EBITDA include: JNJ (19.4x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

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Closest Sector Peers

UNH

20.2x

Sector Median

19.8x

Sector Avg

19.8x

How UNH's EV/EBITDA compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.