Union Stock Valuation

UNP -  USA Stock  

USD 245.10  0.22  0.09%

What is the intrinsic value of Union stock? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Union Pacific, is its stock price multiplied by the total number of shares outstanding, calculating Union Pacific's enterprise value requires a different approach. It uses Union Pacific's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Union Pacific Free Cash Flow is very stable at the moment as compared to the past year. Union Pacific reported last year Free Cash Flow of 3.62 Billion. As of 27th of January 2022, Enterprise Value is likely to grow to about 96.3 B, while Tangible Asset Value is likely to drop about 44.1 B.
Union Pacific Corp has a current Real Value of $269.4 per share. The regular price of the company is $245.1. At this time, the company appears to be undervalued. Our model measures the value of Union Pacific Corp from inspecting the company fundamentals such as Return On Equity of 41.92 %, operating margin of 52.95 %, and Shares Outstanding of 642.88 M as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend obtaining undervalued stocks and abandoning overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.

Union Valuation 

 
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Union Pacific Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Union Pacific's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 245.10
Share
Please note that Union Pacific's price fluctuation is very steady at this time. Calculation of the real value of Union Pacific Corp 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 Corp 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.
220.39
Downside
269.40
Real Value
270.50
Upside
Estimating the potential upside or downside of Union Pacific Corp 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 (9)
LowProjected EPSHigh
9.859.909.96
Details
Hype
Prediction
LowEstimated ValueHigh
243.74244.84245.94
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
2.312.332.35
Details
17 Analysts
Consensus
LowTarget PriceHigh
215.00255.58290.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Union Pacific's intrinsic value based on its ongoing forecasts of Union Pacific's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Union Pacific's closest peers. When choosing an evaluation method for Union Pacific Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Union Pacific Investments

1.16 BillionShare

Union Valuation Drivers Correlation

Many accounts on the financial statements of Union Pacific Corp are highly interrelated and sometimes correlated. Consequently, when conducting Union's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Union
Click cells to compare fundamentals

Union Valuation Trend

Knowing Union Pacific's actual value is paramount for traders to make sound investment determinations. Union Pacific's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Union Pacific's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Union Pacific's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Union Market Cap

Union Pacific Corp is rated below average in market capitalization category among related companies. Market capitalization of Railroads industry is at this time estimated at about 557.5 Billion. Union Pacific totals roughly 157.43 Billion in market capitalization claiming about 28% of equities listed under Railroads industry.
Capitalization  Valuation  Revenue  Total debt  Workforce

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 Corp is rated below average in last dividend paid category among related companies. It is rated below average in five year return category among related companies reporting about  0.43  of Five Year Return per Last Dividend Paid. The ratio of Last Dividend Paid to Five Year Return for Union Pacific Corp is roughly  2.35 . 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.

About Union Pacific Valuation

The equity valuation mechanism determines the current worth of Union Pacific Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Union Pacific Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Union Pacific Corp 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 2022
Gross Profit13.6 B11.8 B
Profit Margin 24.65  23.23 
Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, engages in the railroad business in the United States. The company was founded in 1862 and is headquartered in Omaha, Nebraska. Union Pacific operates under Railroads classification in the United States and is traded on New York Stock Exchange. It employs 29989 people.
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

As of 27th of January 2022, Dividends per Basic Common Share is likely to grow to 2.19, while Payment of Dividends and Other Cash Distributions is likely to drop (2.2 B). . As of 27th of January 2022, Accumulated Retained Earnings Deficit is likely to grow to about 31.6 B, while Earning Before Interest and Taxes EBIT is likely to drop about 5.5 B.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-2.2 B-2.2 B
Dividend Yield 0.0198  0.0176 
Dividends per Basic Common Share 2.03  2.19 
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 Corp 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 Valuation Growth Rates

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.
Quick Ratio0.17
Earnings Quarterly Growth24.00%
Revenue Growth11.50%
Payout Ratio43.12%
Enterprise Value To Ebitda16.21
Earnings Growth29.70%
Enterprise Value To Revenue8.58

Union Pacific Current Valuation Indicators

Valuation refers to the process of determining the present value of Union Pacific Corp 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.
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.
Also, please take a look at World Market Map. Note that the Union Pacific Corp information on this page should be used as a complementary analysis to other Union Pacific's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Complementary Tools for Union Stock analysis

When running Union Pacific Corp 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 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.
The market value of Union Pacific Corp 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 Union Pacific value 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.