Latest Ratios: P/E Ratio 22.9x · EV/EBITDA 15.7x · 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 | $162.8B | $137.3B | $138.8B | $149.9B | $129.2B | $165.1B | $141.4B | $127.7B | $104.3B | $107.5B | $86.6B |
| Enterprise Value | $193.4B | $167.8B | $170.2B | $183.0B | $163.2B | $195.6B | $167.9B | $153.9B | $125.4B | $123.2B | $100.3B |
| P/E Ratio → | 22.90 | 19.32 | 20.56 | 23.50 | 18.47 | 25.32 | 26.42 | 21.57 | 17.48 | 10.04 | 20.45 |
| P/S Ratio | 6.64 | 5.60 | 5.72 | 6.21 | 5.19 | 7.57 | 7.24 | 5.88 | 4.57 | 5.06 | 4.34 |
| P/B Ratio | 8.81 | 7.43 | 8.22 | 10.14 | 10.62 | 11.66 | 8.34 | 7.04 | 5.11 | 4.33 | 4.35 |
| P/FCF | 29.61 | 24.97 | 23.55 | 31.40 | 22.50 | 27.09 | 25.19 | 24.76 | 19.86 | 27.06 | 21.55 |
| P/OCF | 17.53 | 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 | 15.71 | 13.63 | 14.01 | 16.00 | 13.37 | 16.94 | 16.72 | 14.29 | 11.71 | 12.12 | 10.78 |
| EV / EBIT | 19.65 | 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 | 2.0% | 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 | 4.4% | 5.2% | 4.9% | 4.3% | 5.4% | 3.9% | 3.8% | 4.6% | 5.7% | 10.0% | 4.9% |
| FCF Yield | 3.4% | 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 | 3.6% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying UNP stock.
Union Pacific Corporation's current P/E ratio is 22.9x. The historical average is 18.5x. This places it at the 83th percentile of its historical range.
Union Pacific Corporation's current EV/EBITDA is 15.7x. 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 22.9x. This is at the 83th 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 1.99% 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.
Key Metrics
Top Statement Risk
Elevated leverage and macro headwinds
Metrics are mathematically derived from official filings.
Margin Stability Masks Mix Shifts
Gross margin held near 45% for ten quarters, with 2026Q2 at 45.5%, while operating margin expanded to 40.3% from 39.3% a year earlier, according to reported financials, indicating pricing power and cost discipline.
The stability in gross margin despite an 11.5% revenue surge suggests fuel surcharges and pricing are offsetting input cost inflation, but the flat gross margin implies no incremental operating leverage at that level. Operating margin expansion to 40.3% in 2026Q2, up from 39.3% in 2025Q2, reflects SG&A leverage, yet the EPS miss of $0.09 versus consensus hints that mix effects or other costs may be eroding bottom-line quality. Investors should monitor whether the margin expansion is sustainable as volume growth normalizes.
ROIC Lags Peers Despite High ROE
ROIC improved to 4.1% in 2026Q2 from 3.7% a year earlier, while ROE reached 9.9%, according to reported figures, but both remain below CSX and NSC, suggesting capital intensity limits returns.
The gap between ROE (9.9%) and ROIC (4.1%) is wide, reflecting the heavy debt financing of the asset base; ROE is amplified by leverage, not operational superiority. ROIC has been range-bound between 3.6% and 4.1% over the past ten quarters, indicating that incremental capital is not generating outsized returns, likely due to the massive PP&E base. Compared to CSX's ROIC of 10.9% and NSC's 9.8%, UNP's lower returns suggest its Western network may be less efficient or that it is investing heavily for future growth.
Working Capital Cycle Lengthens Slightly
Cash conversion cycle rose to 26 days in 2026Q2 from 30 days in 2024Q1, driven by DSO improvement to 27 days, according to reported data, indicating better receivables management but stable inventory and payables.
DSO has improved from 32 days in 2024Q1 to 27 days in 2026Q2, suggesting more efficient billing and collection, which is consistent with the positive working capital swing in cash flow. However, DIO and DPO have remained flat at 21-22 and 23-24 days respectively, indicating no significant change in inventory turnover or supplier payment terms. The slight lengthening of CCC from 26 to 27 days in the latest quarter is minor, but investors should watch if it signals a shift in customer payment behavior.
Leverage Eases but Debt Service Tightens
Debt-to-equity fell to 1.51 in 2026Q2 from 2.12 in 2024Q1, while interest coverage improved to 9.16 from 7.60, according to reported balance sheet data, indicating a strengthening capital structure.
The reduction in D/E from 2.12 to 1.51 over five quarters reflects both debt repayment and equity growth, but the absolute debt level of $31.2B remains substantial, and D/EBITDA of 9.16 is elevated compared to peers like CSX (not provided) and NSC (not provided). Interest coverage of 9.16 is comfortable, but it is sensitive to rising rates given the high debt load; a 100bp increase in rates could reduce coverage by roughly 0.5x. The reported D/E of 1.72 in the context flags appears to be a typo, as the ratio data shows 1.51, but the trend is clearly deleveraging.
Thin Liquidity Relies on Cash Flow
Current ratio improved to 0.99 in 2026Q2 from 0.93 a year earlier, but remains below 1.0, with quick ratio at 0.82, according to reported figures, indicating a tight short-term position.
The current ratio below 1.0 suggests that current liabilities exceed current assets, which is typical for railroads given their negative working capital cycle, but it leaves little buffer for a sudden cash need. The quick ratio of 0.82 indicates that even without inventory, the company can cover 82% of current liabilities, relying on cash and receivables. However, the robust operating cash flow of $3.1B in 2026Q2 provides a cushion, and the company's access to capital markets likely mitigates liquidity risk.
Premium Valuation Justified by Margins
UNP trades at 24.41x P/E and 16.58x EV/EBITDA, below CSX's 32.73x but above NSC's 26.31x, according to reported multiples, with superior operating margin of 40.3% versus peers.
UNP's operating margin of 40.3% in 2026Q2 is the highest among its public peers (CSX, NSC, CP, CNI), supporting its premium valuation relative to NSC and CNI. However, its ROE of 9.9% is lower than CSX's 24.1% and NSC's 16.8%, suggesting that the market is pricing in future efficiency gains or a structural advantage that has yet to translate into returns. The PEG of 2.80 indicates that the market expects modest growth, but the recent volume acceleration may justify a re-rating if sustained.
Operating Ratio Overstates Efficiency
The operating ratio, often cited as the key metric, ignores capital intensity and maintenance needs; UNP's 59.7% OR in 2026Q2 appears strong, but ROIC of 4.1% reveals the true cost of the asset base.
The operating ratio (OR) is the most commonly misapplied metric for railroads because it measures only operating expenses relative to revenue, ignoring the massive capital expenditures required to maintain the network. UNP's OR of 59.7% (100% - 40.3% operating margin) is excellent, but it does not capture the $900M quarterly capex or the depreciation burden, which is why ROIC remains low. Investors should focus on cash flow return on invested capital (CFROI) or free cash flow yield, which at 31.56x P/FCF indicates the market is paying a premium for cash generation that may not be sustainable if capex needs rise.