UNH — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($294.93)
DCF	$417.04	+41.4%
Graham Number	$181.42	-38.5%
Reverse DCF	—	implied g: 7.2%
DDM	$182.10	-38.3%
EV/EBITDA	$298.05	+1.1%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $15.93B

Near-term growth (yrs 1–5)(%)Rev: 12.3% / EPS: -99.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.08%

Computed WACC: 6.08%

Cost of equity (Re)6.58%(Rf 4.30% + β 0.41 × ERP 5.50%)

Cost of debt (Rd)5.53%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)77.31%

Debt weight (D/V)22.69%

Results

Intrinsic Value / share$839.71

Current Price$294.93

Upside / Downside+184.7%

Net Debt (used)$50.27B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	4.3%	8.3%	12.3%	16.3%	20.3%
7.0%	$441.17	$536.82	$647.17	$773.86	$918.69
8.0%	$347.16	$423.48	$511.42	$612.30	$727.52
9.0%	$282.29	$345.30	$417.84	$500.96	$595.82
10.0%	$234.89	$288.21	$349.53	$419.72	$499.76
11.0%	$198.78	$244.75	$297.55	$357.93	$426.73

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $13.30

Book Value / share($)Yahoo: $109.99

Results

Graham Number$181.42

Current Price$294.93

Margin of Safety-38.5%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.08%

Terminal growth rate(%)

Computed WACC: 6.08%

Cost of equity (Re)6.58%(Rf 4.30% + β 0.41 × ERP 5.50%)

Cost of debt (Rd)5.53%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)77.31%

Debt weight (D/V)22.69%

Results

Current Price$294.93

Implied Near-term FCF Growth-2.3%

Historical Revenue Growth12.3%

Historical Earnings Growth-99.8%

Base FCF (TTM)$15.93B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $8.84

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$182.10

Current Price$294.93

Upside / Downside-38.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $23.32B

Target EV/EBITDA multipleCurrent: 13.7×

Net Debt($B)Default: $50.27B

Results

Implied Equity Value / share$298.05

Current Price$294.93

Upside / Downside+1.1%

Implied EV$320.25B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$24.27B	$37.27B	$50.27B	$63.27B	$76.27B
9.7x	$223.75	$209.40	$195.05	$180.70	$166.35
11.7x	$275.25	$260.90	$246.55	$232.20	$217.85
13.7x	$326.75	$312.40	$298.05	$283.70	$269.35
15.7x	$378.25	$363.90	$349.55	$335.20	$320.85
17.7x	$429.75	$415.40	$401.05	$386.70	$372.34

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