| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 57 | 23.5x | 17.3x | Around median | |
Growth | 30 | 3.3% | 7.1% | Bottom tier | |
Quality | 90 | 11.8% | 4.5% | Top tier | |
Safety | 62 | 1.7x | 2.6x | Around median | |
Capital Return | 91 | 2.19% | 0.06% | Top tier | |
Momentum | 79 | 4.5% | -1.6% | Top tier | |
Sentiment | 41 | 19 | 3 | Around median |
The floor: what the company is worth if growth stopped today
49% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
UnitedHealth Group combines health insurance through UnitedHealthcare with care delivery and pharmaceutical and technology services through Optum. Its business centers on managing coverage and medical costs, providing value-based care through Optum Health, managing pharmacy benefits and services through Optum Rx, and delivering data and technology solutions through Optum Insight. This integration enables the company to connect insurance with treatment, pharmacy services, and claims management, but makes care cost control and execution quality central to its profitability.
In quarter 3 of fiscal year 2026, ended 2026-09-30, revenue according to EL7 data was approximately $112.7 billion, net income was $4.1 billion, and diluted earnings per share were $4.56. Gross margin was 19.5%, and operating margin as calculated by EL7 was 5.8%. Net income in quarter 3 of fiscal year 2025 was approximately $2.3 billion, and diluted earnings per share were $2.59; however, a reliable comparison of revenue growth and year-over-year margin changes is unavailable because the definition of the revenue line item differs between the periods.
Conditions vary across the group's businesses: management expects the Medicare margin to approach the upper end of the 2%–4% range in fiscal year 2026, while expecting a Medicaid margin modestly better than negative 1% for the same period. On the 2026-10-13 call, management explained that more than 50% of Optum Rx membership now comes from outside UnitedHealthcare, and that Optum Health serves 20 million patients, including approximately 4 million under arrangements in which it assumes comprehensive responsibility for care. This base gives the company opportunities to expand within its existing services, while improvement in commercial insurance and Medicaid funding remain decisive factors.
Q3 FY2026
Last 12 months to 2026-09-30
When: 2027-01-20
Annual adjusted earnings per share reaching the $20.50 threshold in the expected earnings announcement
Annual Medicaid margin at the negative 1% threshold in the expected earnings announcement
The median target of 15 analysts is $493, within a range of $373–529, and reflects their growth expectations; this method is inherently optimistic. The industry-multiple valuation is $415, within a range of $316–502, based on next year's earnings at a median multiple of 20.6 across 11 companies, measuring UnitedHealth's value when its earnings are priced similarly to those of its peers. The no-growth valuation is $208, assuming current after-tax operating profit remains constant forever and a discount rate of 8.7%, measuring the value that remains if growth stops. The analyst target range overlaps with the industry-multiple range, but the median target exceeds the multiple-based valuation, while the no-growth value falls below both; this difference reflects the weight of expected growth in the targets, relative pricing in the multiple, and the complete exclusion of growth in the third method.
Figures in the text are as of 2026-10-20; the live price is shown at the top of the page.
UnitedHealthcare manages health coverage, while Optum provides care, pharmacy, and technology services through Optum Health, Optum Rx, and Optum Insight. According to the 2026-10-13 call, Optum Health serves approximately 20 million patients, including approximately 4 million under arrangements involving comprehensive responsibility for care. External membership at Optum Rx also exceeded 50%, illustrating that Optum's business extends to clients outside UnitedHealthcare.
Net income in quarter 3 of fiscal year 2026, ended 2026-09-30, was approximately $4.1 billion, and diluted earnings per share were $4.56. This compares with net income of $2.3 billion and diluted earnings per share of $2.59 in quarter 3 of fiscal year 2025. Revenue according to EL7 data was approximately $112.7 billion in quarter 3 of fiscal year 2026, but a reliable year-over-year comparison of revenue growth and margins is unavailable because the definition of the revenue line item differs.
Automated analysis for informational purposes only — not investment advice.
When: 2028
Optum Health's target margin between 6% and 8%
The medical cost ratio was 88.4% in quarter 3 of fiscal year 2026, ended 2026-09-30, but the group's improvement does not mean pressures have disappeared across all its businesses. On the 2026-10-13 call, management said that medical cost growth in commercial insurance exceeds its initial assumption of 11% for fiscal year 2026. It also expected a Medicaid margin modestly better than negative 1% for the same period, with continued variation in funding adequacy and the timing of state rate updates.
Operating cash flow according to EL7 data was approximately $26.2 billion for the trailing 12 months through 2026-09-30, compared with net income of $15.9 billion for the same period. This represents earnings-to-cash conversion of 165%. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditures) for the trailing 12 months was $22.8 billion, with share repurchases of $5.0 billion for the same period.
The earnings announcement is expected on 2027-01-20, and the first point to verify is the adjusted earnings per share guidance of at least $20.50 for fiscal year 2026, ending 2026-12-31. Monitoring includes Medicare's ability to approach the upper end of the 2%–4% margin range for fiscal year 2026 and improvement in the Medicaid margin above negative 1% for the same period. Details of Optum Health's investments and risk seasonality in quarter 4 of fiscal year 2026 will also be important in assessing the sustainability of the improvement.