Buy UnitedHealth Based on DCF Undervaluation

3 months ago

Parkev Tatevosian, CFA

"So, all that being said, do I still think this stock is a buy? Remember, I've had it rated as a buy for several months now. So, let's look at my updated fair value calculation for United Health. So, what you're looking at is my proprietary discounted cash flow valuation model, which values a business and gives me a fair value that I think is a reasonable price to pay. And that price I calculated at $458 for United Health and the current share price is $358. So, it's still meaningfully undervalued according to my calculations. So, I will update my rating for United Health. As I noted earlier, I've had it rated as a buy and today I updated and reiterated that buy recommendation for United Health Group."

The speaker reaffirms his buy rating on UnitedHealth Group, citing a proprietary discounted cash flow model that estimates a fair value of $458 compared to the current price of $358. He underscores the stock's recovery from earlier price declines and believes upcoming price increases will help restore profit margins.

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