Latest Ratios: P/E Ratio 23.7x · EV/EBITDA 16.1x · ROE 40.4%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $168.1B | $137.3B | $138.8B | $149.9B | $129.2B | $165.1B | $141.4B | $127.7B | $104.3B | $107.5B | $86.6B |
| Enterprise Value | $198.6B | $167.8B | $170.2B | $183.0B | $163.2B | $195.6B | $167.9B | $153.9B | $125.4B | $123.2B | $100.3B |
| P/E Ratio → | 23.65 | 19.32 | 20.56 | 23.50 | 18.47 | 25.32 | 26.42 | 21.57 | 17.48 | 10.04 | 20.45 |
| P/S Ratio | 6.86 | 5.60 | 5.72 | 6.21 | 5.19 | 7.57 | 7.24 | 5.88 | 4.57 | 5.06 | 4.34 |
| P/B Ratio | 9.10 | 7.43 | 8.22 | 10.14 | 10.62 | 11.66 | 8.34 | 7.04 | 5.11 | 4.33 | 4.35 |
| P/FCF | 30.57 | 24.97 | 23.55 | 31.40 | 22.50 | 27.09 | 25.19 | 24.76 | 19.86 | 27.06 | 21.55 |
| P/OCF | 18.09 | 14.78 | 14.85 | 17.89 | 13.80 | 18.28 | 16.56 | 14.83 | 12.00 | 14.87 | 11.51 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.85 | 7.02 | 7.59 | 6.56 | 8.97 | 8.60 | 7.09 | 5.49 | 5.80 | 5.03 |
| EV / EBITDA | 16.13 | 13.63 | 14.01 | 16.00 | 13.37 | 16.94 | 16.72 | 14.29 | 11.71 | 12.12 | 10.78 |
| EV / EBIT | 20.19 | 16.02 | 16.92 | 19.12 | 15.78 | 20.31 | 20.68 | 17.49 | 14.56 | 14.75 | 13.44 |
| EV / FCF | — | 30.52 | 28.88 | 38.34 | 28.42 | 32.09 | 29.92 | 29.84 | 23.89 | 31.00 | 24.96 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.4% | 59.4% | 45.5% | 43.7% | 45.0% | 48.2% | 47.0% | 44.3% | 41.8% | 42.4% | 41.5% |
| Operating Margin | 40.1% | 40.1% | 40.1% | 37.7% | 39.9% | 42.8% | 40.1% | 39.4% | 37.3% | 38.0% | 36.5% |
| Net Profit Margin | 29.1% | 29.1% | 27.8% | 26.4% | 28.1% | 29.9% | 27.4% | 27.3% | 26.1% | 50.4% | 21.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 40.4% | 40.4% | 42.6% | 47.3% | 53.2% | 41.9% | 30.5% | 30.7% | 26.4% | 47.8% | 20.8% |
| ROA | 10.4% | 10.4% | 10.0% | 9.6% | 10.9% | 10.4% | 8.6% | 9.8% | 10.2% | 18.9% | 7.7% |
| ROIC | 15.2% | 15.2% | 15.1% | 14.5% | 16.4% | 15.9% | 13.4% | 14.9% | 15.6% | 16.3% | 16.2% |
| ROCE | 15.5% | 15.5% | 15.6% | 14.9% | 16.8% | 16.1% | 13.6% | 15.3% | 15.7% | 15.2% | 14.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.72 | 1.72 | 1.92 | 2.31 | 2.87 | 2.22 | 1.67 | 1.49 | 1.10 | 0.68 | 0.75 |
| Debt / EBITDA | 2.58 | 2.58 | 2.67 | 2.99 | 2.86 | 2.73 | 2.82 | 2.51 | 2.09 | 1.67 | 1.61 |
| Net Debt / Equity | — | 1.65 | 1.86 | 2.24 | 2.79 | 2.16 | 1.56 | 1.45 | 1.03 | 0.63 | 0.69 |
| Net Debt / EBITDA | 2.48 | 2.48 | 2.59 | 2.90 | 2.78 | 2.64 | 2.64 | 2.43 | 1.97 | 1.54 | 1.47 |
| Debt / FCF | — | 5.55 | 5.34 | 6.94 | 5.92 | 5.01 | 4.73 | 5.08 | 4.02 | 3.94 | 3.42 |
| Interest Coverage | 8.00 | 8.00 | 7.93 | 7.14 | 8.14 | 8.33 | 7.12 | 8.38 | 9.90 | 11.61 | 10.69 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.91 | 0.91 | 0.77 | 0.81 | 0.72 | 0.62 | 1.01 | 0.79 | 0.90 | 1.03 | 0.99 |
| Quick Ratio | 0.75 | 0.75 | 0.62 | 0.67 | 0.58 | 0.51 | 0.86 | 0.62 | 0.74 | 0.83 | 0.79 |
| Cash Ratio | 0.30 | 0.30 | 0.20 | 0.21 | 0.18 | 0.18 | 0.45 | 0.20 | 0.29 | 0.35 | 0.37 |
| Asset Turnover | — | 0.35 | 0.36 | 0.36 | 0.38 | 0.34 | 0.31 | 0.35 | 0.39 | 0.37 | 0.36 |
| Inventory Turnover | 12.65 | 12.65 | 17.18 | 18.29 | 18.45 | 18.18 | 16.23 | 16.10 | 17.92 | 16.33 | 16.28 |
| Days Sales Outstanding | — | 27.70 | 28.51 | 31.37 | 27.75 | 28.83 | 28.12 | 26.82 | 28.06 | 25.66 | 23.03 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.9% | 2.4% | 2.3% | 2.1% | 2.4% | 1.7% | 1.9% | 2.0% | 2.2% | 1.8% | 2.2% |
| Payout Ratio | 45.3% | 45.3% | 47.6% | 49.7% | 45.1% | 42.9% | 49.1% | 43.9% | 38.5% | 18.5% | 44.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.2% | 5.2% | 4.9% | 4.3% | 5.4% | 3.9% | 3.8% | 4.6% | 5.7% | 10.0% | 4.9% |
| FCF Yield | 3.3% | 4.0% | 4.2% | 3.2% | 4.4% | 3.7% | 4.0% | 4.0% | 5.0% | 3.7% | 4.6% |
| Buyback Yield | 1.6% | 2.0% | 1.1% | 0.5% | 4.9% | 4.4% | 2.6% | 4.5% | 7.9% | 3.7% | 3.6% |
| Total Shareholder Yield | 3.5% | 4.3% | 3.4% | 2.6% | 7.3% | 6.1% | 4.5% | 6.6% | 10.1% | 5.6% | 5.8% |
| Shares Outstanding | — | $594M | $609M | $610M | $624M | $655M | $679M | $706M | $754M | $802M | $835M |
Competitive CPKC network expansion
According to current market data, Union Pacific trades at a forward P/E of 21.29, which suggests investors are pricing in a quality premium relative to Eastern peers, likely due to its unique Western geographic footprint and consistent historical margin leadership in the North American rail sector.
The current P/E multiple appears elevated compared to broader industrial averages, implying that the market expects sustained pricing power despite potential volume headwinds. Investors should monitor whether this valuation remains justified as the CPKC merger introduces new competitive pressures that could challenge the company's long-term growth trajectory.
Based on reported financial statements, Union Pacific's ROIC has remained in a narrow range between 3.6% and 3.9% over the last ten quarters, indicating that the company's massive, non-discretionary capital expenditure requirements for network maintenance may be limiting its ability to compound returns on invested capital.
While the company maintains strong operating margins, the low ROIC relative to its cost of capital warrants further investigation into whether current asset utilization levels are sufficient. The persistent capital intensity suggests that significant margin expansion is required to drive meaningful improvements in shareholder value creation over the long term.
As reported in recent quarterly filings, Union Pacific's cash conversion cycle has fluctuated between 26 and 31 days, demonstrating a consistent ability to manage its working capital despite the inherent operational complexities of maintaining a 32,000-mile rail network across diverse industrial and bulk freight segments.
The stability in DSO and DPO metrics suggests that the company maintains effective leverage over its supplier and customer base, which is critical for preserving cash flow during periods of industrial volatility. Investors should monitor these efficiency ratios for any signs of degradation that might indicate a loss of pricing power or operational fluidity.
Based on the provided quarterly data, Union Pacific has successfully reduced its debt-to-equity ratio from 2.31 in 2023Q4 to 1.72 by 2025Q4, signaling a deliberate shift toward balance sheet fortification that may provide greater strategic optionality in a volatile industrial environment.
This reduction in leverage appears to be a prudent response to the capital-intensive nature of the rail industry, potentially lowering interest expense and improving the company's ability to navigate future economic downturns. The current interest coverage ratio of 7.68 suggests that debt service remains comfortable, though investors should continue to monitor the impact of ongoing CAPEX on future liquidity.
As noted in industry analysis, the Operating Ratio is the most commonly misapplied metric for Union Pacific, as it focuses exclusively on cost-cutting efficiency while potentially obscuring the long-term risks of service degradation and the loss of market share to more flexible over-the-road trucking competitors.
Investors should instead prioritize metrics like freight car velocity and yield per carload to better assess the company's underlying operational health and pricing power. Relying solely on the Operating Ratio may lead to an incomplete understanding of the trade-offs between short-term margin optimization and long-term network reliability.
Includes 30+ ratios · 30 years · Updated daily
Wall Street verdict, signals, and target summaries.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying UNP stock.
Union Pacific Corporation's current P/E ratio is 23.7x. The historical average is 18.5x. This places it at the 86th percentile of its historical range.
Union Pacific Corporation's current EV/EBITDA is 16.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.7x.
Union Pacific Corporation's return on equity (ROE) is 40.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 21.2%.
Based on historical data, Union Pacific Corporation is trading at a P/E of 23.7x. This is at the 86th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Union Pacific Corporation's current dividend yield is 1.93% with a payout ratio of 45.3%.
Union Pacific Corporation has 59.4% gross margin and 40.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Union Pacific Corporation's Debt/EBITDA ratio is 2.6x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.