With shares trading around $295, I prepared a Discounted Cash Flow (DCF) valuation of UNH this morning. 🧐 DCF analysis can help strip away some of the noise and focus on long-term cash generation potential. I used an annualized Free Cash Flow base of approximately $18.2 billion, under the different scenarios shown in the attached table. Some comments: - 🧸 Even bearish assumptions show a gap: using a conservative growth rate of 3% and a WACC of 7.4% (a rate reflecting a reasonable risk profile for a stable healthcare company) yielded an intrinsic value of approximately $415 per share (40% upside from $295). - 📈 If UNH achieves a sustainable growth rate of 4% (still a reasonable expectation for a company in the healthcare insurance sector) and is discounted at a WACC of 7.4%, the DCF model points to an intrinsic value around $559 per share (90% upside from $295). - ⚖️ Balancing growth and risk: using 4% growth rate and a more conservative WACC of 8%, the resulting value per share is $467 (58% upside). - 🤦🏻 It's worth noting that a scenario with a 3% growth rate and a higher WACC of 9% (reflecting a more cautious view on risk or higher cost of capital) yielded an intrinsic value of around $289 per share, which aligns closely with the current market price meaning that UNH is currently priced under such extremely pessimistic assumptions. 🚀 While DCF models are not crystal balls, and their outputs are only as reliable as the assumptions that are fed into them, this analysis is one of the reasons that I remain extremely bullish on $UNH and continue to hold a long position primarily composed of call options expiring in the next few months, along with $NVDA and $SPY positions to hedge the risk.