UnitedHealth Group's stock performance has outpaced the S&P 500 in recent years. The document discusses UnitedHealth Group's earnings per share, price-to-earnings ratio, dividend yield, share buybacks, and analysts' earnings per share estimates for the current and next fiscal years. It aims to help investors understand how to analyze UnitedHealth Group as an investment by examining these key financial metrics and ratios.

1. UnitedHealth Group
An Owner's Manual for Investors

2. you're entitled to a share of its earnings.
As an owner of UnitedHealth Group's stock

3. NOT TO SCALE
obviously
$6.2
Billion
UNH's
12-Month
Earnings
UNH's
Earnings
Per Share
$6.30

4. If you divide UnitedHealth Group's
share price by its earnings per share
(EPS), you get its price-to-earnings
ratio.

5. P/E
Ratio
=
Share Price
EPS
18.45=
$116.20
$6.30
=
This is how much it costs to buy $1
of UNH's annual earnings.

6. A higher P/E ratio implies a lower
potential return.

7. 1
10
100
1,000
100 Biggest S&P Companies
P/ERatio
Most companies have P/E ratios
between 12 and 30.
What Is a Typical Stock's P/E Ratio?

8. You can also use UnitedHealth
Group's P/E ratio to derive its
earnings yield.

9. 1
18.45 5.4%
UNH's
Earnings
Yield
1
P/E Ratio
= ==

10. This helps you compare a stock
to other types of investments,
such as bonds and real estate.

11. 5.42%
6.63%
4.33%
2.90%
2.45%2.21%
UNH's
Earnings
Yield
Class A
Office
Building
Cap Rate
S&P 500
Earnings
Yield
10-Year
AAA Corp.
Bonds
5-Year
CDs
10-Year
Treasuries
Average Rates of Return

12. Of course, if you own one share of
UnitedHealth Group stock, you don't
get a check each year for its EPS.

13. You receive quarterly dividends
instead, which typically account
for only a portion of total earnings.

14. 27%
UNH's Payout Ratio
The payout ratio is the percentage of earnings
paid as dividends. Anywhere from 30% to
70% is normal.

15. 1.72%UnitedHealth Group's Dividend Yield

16. UNH's
Dividend
Yield
=
Dividend
per Share
Share
Price
=
$2.00
$116.20
= 1.72%

17. You can then use this to compare
stocks based on their income-
generating potential.

18. 1.72%
3.88%
3.32%
3.12%
1.72%
0.73%
UNH IBM Wal-Mart Coca-Cola Comcast Visa
Representative Dividend Yields

19. UNH also buys back its own stock.

20. This reduces its share count, which
increases the ownership interest
of each remaining share.

21. $1.7
Billion
-1.7%
UNH's
Buybacks
(TTM)
Change in
UNH's Share
Count (TTM)

22. UnitedHealth Group's stock?
So, what does the future hold for

23. UNH
106%
S&P 500
96%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
Today2013201120092007
If the Past Is Prologue...
Total return since Jan. 1, 2006

24. UnitedHealth Group's earnings to grow.
While it's impossible to predict the
future with precision, analysts expect

25. $6.42
$7.72
Current Fiscal Year Next Fiscal Year
Average Earnings per Share Estimate Among Wall
Street Analysts
Divining UnitedHealth Group's Future

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