The healthcare giant looks expensive at a glance, but a patient investor is effectively buying its future earnings at a significant discount.

At first glance, UnitedHealth (UNH) stock seems to carry a premium price tag. Trading near its 52-week high, the shares command a price-to-earnings ratio of about 23.1 times this year’s expected earnings. For many investors, that’s where the analysis stops. But what if that’s not the price you’re really paying?

The Discount Patience Buys You

The real story here is the forward valuation discount. While you pay about 23.1 times this year’s earnings, that same $425.6 share price is only about 17.0 times the earnings analysts expect by 2028. As the company’s…