Union Pacific Valuation

UNP Stock  USD 246.05  1.42  0.58%   
At this time, the company appears to be fairly valued. Union Pacific has a current Real Value of $242.97 per share. The regular price of the company is $246.05. Our model measures the value of Union Pacific from inspecting the company fundamentals such as Shares Outstanding of 609.78 M, return on equity of 0.47, and Operating Margin of 0.39 % as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend buying undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Price Book
10.0872
Enterprise Value
182.3 B
Enterprise Value Ebitda
15.3291
Price Sales
6.1848
Forward PE
21.7391
Fairly Valued
Today
246.05
Please note that Union Pacific's price fluctuation is very steady at this time. Calculation of the real value of Union Pacific is based on 3 months time horizon. Increasing Union Pacific's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Union Pacific is useful when determining the fair value of the Union stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Union Pacific. Since Union Pacific is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Union Stock. However, Union Pacific's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  246.05 Real  242.97 Target  241.08 Hype  244.6 Naive  241.53
The real value of Union Stock, also known as its intrinsic value, is the underlying worth of Union Pacific Company, which is reflected in its stock price. It is based on Union Pacific's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Union Pacific's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Union Pacific's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
242.04
Downside
242.97
Real Value
269.09
Upside
Estimating the potential upside or downside of Union Pacific helps investors to forecast how Union stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Union Pacific more accurately as focusing exclusively on Union Pacific's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
2.392.332.75
Details
Hype
Prediction
LowEstimatedHigh
243.67244.60245.53
Details
Potential
Annual Dividend
LowForecastedHigh
3.383.433.47
Details
29 Analysts
Consensus
LowTarget PriceHigh
219.38241.08267.60
Details

Union Pacific Investments

(3.48 Billion)

Union Pacific Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Union Pacific's current stock value. Our valuation model uses many indicators to compare Union Pacific value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Union Pacific competition to find correlations between indicators driving Union Pacific's intrinsic value. More Info.
Union Pacific is rated first in net asset category among related companies. It is rated first in last dividend paid category among related companies . The ratio of Net Asset to Last Dividend Paid for Union Pacific is about  12,910,000,000 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Union Pacific by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Union Pacific's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Union Pacific's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Union Pacific's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Union Pacific and how it compares across the competition.

About Union Pacific Valuation

The stock valuation mechanism determines the current worth of Union Pacific on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Union Pacific. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Union Pacific based exclusively on its fundamental and basic technical indicators. By analyzing Union Pacific's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Union Pacific's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Union Pacific. We calculate exposure to Union Pacific's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Union Pacific's related companies.
Last ReportedProjected for 2024
Gross Profit10.5 B8.7 B
Pretax Profit Margin 0.34  0.36 
Operating Profit Margin 0.38  0.40 
Net Profit Margin 0.26  0.28 
Gross Profit Margin 0.44  0.66 

Union Pacific Quarterly Retained Earnings

62.09 Billion

8 Steps to conduct Union Pacific's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Union Pacific's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Union Pacific's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Union Pacific's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Union Pacific's revenue streams: Identify Union Pacific's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Union Pacific's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Union Pacific's growth potential: Evaluate Union Pacific's management, business model, and growth potential.
  • Determine Union Pacific's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Union Pacific's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Union Pacific's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Union Pacific's value is low or high relative to the company's performance and growth projections. Determining the market value of Union Pacific can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Union Pacific represents a small ownership stake in the entity. As a stockholder of Union, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Union Pacific Dividends Analysis For Valuation

At this time, Union Pacific's Dividend Yield is relatively stable compared to the past year. As of 03/28/2024, Dividend Payout Ratio is likely to grow to 0.50, though Dividends Paid is likely to grow to (3 B). . As of 03/28/2024, Retained Earnings is likely to grow to about 65.2 B, while Retained Earnings Total Equity is likely to drop slightly above 36.5 B.
Last ReportedProjected for 2024
Dividends Paid-3.2 B-3 B
Dividend Yield 0.02  0.03 
Dividend Payout Ratio 0.50  0.50 
Dividend Paid And Capex Coverage Ratio(19.35)(18.38)
There are various types of dividends Union Pacific can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Union shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Union Pacific directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Union pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Union Pacific by the value of the dividends paid out.

Union Pacific Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Union Pacific does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding610.2 M
Quarterly Earnings Growth Y O Y0.012
Forward Price Earnings21.7391

Union Pacific Current Valuation Indicators

Valuation refers to the process of determining the present value of Union Pacific and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Union we look at many different elements of the entity such as Union's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Union Pacific's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Union Pacific's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Union Pacific, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Union Pacific's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Union Pacific's worth.
When determining whether Union Pacific is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Union Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Union Pacific Stock. Highlighted below are key reports to facilitate an investment decision about Union Pacific Stock:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Union Pacific. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
To learn how to invest in Union Stock, please use our How to Invest in Union Pacific guide.
You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

Complementary Tools for Union Stock analysis

When running Union Pacific's price analysis, check to measure Union Pacific's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Union Pacific is operating at the current time. Most of Union Pacific's value examination focuses on studying past and present price action to predict the probability of Union Pacific's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Union Pacific's price. Additionally, you may evaluate how the addition of Union Pacific to your portfolios can decrease your overall portfolio volatility.
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Is Union Pacific's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Union Pacific. If investors know Union will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Union Pacific listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.012
Dividend Share
5.2
Earnings Share
10.45
Revenue Per Share
39.591
Quarterly Revenue Growth
(0)
The market value of Union Pacific is measured differently than its book value, which is the value of Union that is recorded on the company's balance sheet. Investors also form their own opinion of Union Pacific's value that differs from its market value or its book value, called intrinsic value, which is Union Pacific's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Union Pacific's market value can be influenced by many factors that don't directly affect Union Pacific's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Union Pacific's value and its price as these two are different measures arrived at by different means. Investors typically determine if Union Pacific is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Union Pacific's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.