UNH DCF Analysis: Intrinsic Value $364 vs Price $393

UnitedHealth Group Inc (UNH) has been experiencing varied price performance in recent times. According to GuruFocus's DCF analysis, the intrinsic value of UNH is $364 versus its current price of $393.

The DCF earnings-based model projects a two-stage valuation approach for UNH. In the first stage, EPS growth is expected at 13.2% annually over the next ten years, discounted at a rate of 11%. The terminal phase anticipates a slowdown to a 4% growth rate, also discounted at 11%. This results in an intrinsic value of $363.64.

In contrast, the free cash flow (FCF)-based intrinsic value for UNH is calculated at $445.16, suggesting modest undervaluation when compared to the earnings-based intrinsic value.