UnitedHealth Group Incorporated

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
Leerink Partners Ana Gupte ana.gupte@leerink.com
CRT Capital Group Brian Wright bwright@sterneageecrt.com
Susquehanna Financial Group Chris Rigg chris.rigg@sig.com
Cowen & Company Christine Arnold christine.arnold@cowen.com
Jefferies David Windley dwindley@jefferies.com
RBC Capital Markets Frank G. Morgan frank.morgan@rbccm.com
Cantor Fitzgerald Joseph D. France jfrance@cantor.com
Raymond James Michael J. Baker michael.baker@raymondjames.com
Oppenheimer Michael Wiederhorn michael.wiederhorn@opco.com
Wells Fargo Securities Peter Costa peter.costa@wellsfargo.com
Wedbush Securities Sarah James sarah.james@wedbush.com
Credit Suisse Scott Fidel scott.fidel@credit-suisse.com
Piper Jaffray Sean W. Wieland sean.w.wieland@pjc.com
Mizuho Securities USA Sheryl R. Skolnick sheryl.skolnick@us.mizuho-sc.com
FBR Capital Markets & Co Steven Halper shalper@fbr.com
Stifel Nicolaus Thomas A. Carroll tacarroll@stifel.com

Return to top of page


Primary Input Data

Return to top of page


Derived Input Data

Derived Input

Label

2015 Value

2016
Value

Equational Form

Net Operating Profit Less Adjusted Taxes NOPLAT 7,178 8,434 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF 8,184 8,090 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 339 433 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 102,605 114,885 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 7.00% 7.34% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv 23,244 12,280 NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR 323.83% 145.61% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
WACCMarket 10.61% 16.15% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook  6.94%  7.30%
Enterprise value
EVMarket 130,079 172,419 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook  127,141  167,705
Long-Run Growth
g = IR x ROIC
22.65% 10.69% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP  2.50%  2.50%
Margin from Operations M 7.03% 7.02% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D 0.00% 0.00% D\,\,=\,\,\frac{D+A}{EBITDA}

Return to top of page


Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value

Single-stage

multiple g solution

Two-stage valuation

model g solution

12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016

EV/SALES 

\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

 0.83  0.93  24.11%  33.37%  20.03%  21.23%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

11.78 13.29 24.11%  33.37% 20.03% 21.23%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

18.12 20.44 24.11%  33.37% 20.03% 21.23%

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

15.89 21.31 24.11%  33.37% 20.03% 21.23%

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

11.78 13.29 24.11%  33.37% 20.03% 21.23%

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

1.27 1.50 24.11%  33.37% 20.03% 21.23%

Return to top of page