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United Therapeutics: Is UTHR Stock Still A Buy At $400?

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United Therapeutics’ stock (NASDAQ: UTHR) surged 33% on September 2nd after the company announced positive late-stage clinical trial results for Tyvaso (treprostinil) Inhalation Solution in idiopathic pulmonary fibrosis (IPF). The trial met its primary endpoint, and the treatment showed good tolerability with a safety profile consistent with prior Tyvaso studies.

This marks a major expansion opportunity for an already successful therapy. Tyvaso, approved by the FDA in 2009, generated $1.6 billion in sales last year—a 31% year-over-year increase. If approved for the new IPF indication, the drug could add an extra $4-5 billion in peak sales.

Even after the stock’s recent 30% jump, we view UTHR as attractive around $400. The company’s strong fundamentals and a moderate current valuation support further upside, making it a compelling buy despite the rally.

Our constructive view follows a comprehensive review of UTHR’s current valuation alongside its recent operating performance and financial position. Across the key pillars—Growth, Profitability, Financial Stability, and Downturn Resilience—United Therapeutics exhibits very strong operations and balance sheet health, leaving little cause for concern at present levels.

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How Does United Therapeutics’ Valuation Look vs. The S&P 500?

Going by what you pay per dollar of sales or profit, UTHR stock looks slightly cheap relative to the broader market.

  • United Therapeutics has a price-to-sales (P/S) ratio of 5.9 vs. a figure of 3.3 for the S&P 500
  • Additionally, the company’s price-to-free cash flow (P/FCF) ratio is 17.0 compared to 21.4 for S&P 500
  • And, it has a price-to-earnings (P/E) ratio of 14.7 vs. the benchmark’s 24.0

How Have United Therapeutics’ Revenues Grown Over Recent Years?

United Therapeutics’ Revenues have grown notably in recent years.

  • United Therapeutics has seen its top line grow at an average rate of 19.9% over the last 3 years (vs. increase of 5.3% for S&P 500)
  • Its revenues have grown 17.6% from $2.6 Bil to $3.1 Bil in the last 12 months (vs. growth of 5.1% for S&P 500)
  • Also, its quarterly revenues grew 11.7% to $799 Mil in the most recent quarter from $715 Mil a year ago (vs. 6.1% improvement for S&P 500)

How Profitable Is United Therapeutics?

United Therapeutics’ profit margins are considerably higher than most companies in the Trefis coverage universe.

Does United Therapeutics Look Financially Stable?

United Therapeutics’ balance sheet looks very strong.

  • United Therapeutics’ Debt figure was $0.0 at the end of the most recent quarter, while its market capitalization is $18 Bil (as of 9/2/2025). This implies a very strong Debt-to-Equity Ratio of 0.0% (vs. 20.3% for S&P 500). [Note: A low Debt-to-Equity Ratio is desirable]
  • Cash (including cash equivalents) makes up $3.0 Bil of the $7.9 Bil in Total Assets for United Therapeutics. This yields a very strong Cash-to-Assets Ratio of 38.6% (vs. 7.2% for S&P 500)

How Resilient Is UTHR Stock During A Downturn?

UTHR stock has been more resilient than the benchmark S&P 500 index during several recent downturns. Concerned about how a market sell-off might affect UTHR? Our dashboard UTHR Climbed 30% In A Day. How Confident Are You In The Stock? provides a deeper look at performance during and after prior market crashes.

Inflation Shock (2022)

  • UTHR stock fell 26.8% from a high of $280.43 on 9 December 2022 to $205.19 on 30 May 2023, vs. a peak-to-trough decline of 25.4% for the S&P 500
  • The stock fully recovered to its pre-Crisis peak by 12 June 2024
  • Since then, the stock has increased to a high of $410.00 on 10 November 2024 and currently trades at around $400

COVID-19Pandemic (2020)

  • UTHR stock fell 31.2% from a high of $115.35 on 24 February 2020 to $79.39 on 18 March 2020, vs. a peak-to-trough decline of 33.9% for the S&P 500
  • The stock fully recovered to its pre-Crisis peak by 11 May 2020

Global Financial Crisis (2008)

  • UTHR stock fell 57.7% from a high of $38.66 on 5 August 2008 to $16.34 on 20 November 2008, vs. a peak-to-trough decline of 56.8% for the S&P 500
  • The stock fully recovered to its pre-Crisis peak by 23 September 2009

Putting All The Pieces Together: What It Means For UTHR Stock

In summary, United Therapeutics’ performance across the parameters detailed above is as follows:

• Growth: Strong
• Profitability: Very Strong
• Financial Stability: Very Strong
• Downturn Resilience: Strong
• Overall: Strong

Overall, United Therapeutics has delivered robust results across key financial and operational metrics. While the stock trades at a premium to the index average, the valuation remains moderate given solid revenue growth and strong profitability.

At current levels near $400, UTHR stock trades at 6x trailing revenues—a multiple aligned with its historical average. With positive clinical data that could unlock roughly $5 billion in incremental revenue opportunity, an upward revision to this multiple appears justified.

Of course, our assessment could prove wrong. Investors may be unwilling to pay a higher multiple for UTHR, especially amid rising competitive pressures. The FDA’s approval of Yutrepia in May 2025 introduces new competition that could affect Tyvaso’s pricing power and market position.

Even with these near-term uncertainties, we believe UTHR is a solid opportunity for investors with a 3–5 year horizon, including at prices above $400. The company’s strong operating base and sizable market expansion potential should support long-term value creation for patient investors.

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