UHS PE Ratio & Valuation,Is UHS Overvalued

UHS Relative Valuation

UHS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, UHS is overvalued; if below, it's undervalued.

Historical Valuation

Universal Health Services Inc (UHS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 9.62 is considered Undervalued compared with the five-year average of 11.67. The fair price of Universal Health Services Inc (UHS) is between 243.98 to 314.96 according to relative valuation methord. Compared to the current price of 224.21 USD , Universal Health Services Inc is Undervalued By 8.1%.

Relative Value

Fair Zone

243.98-314.96

Current Price：224.21

8.1%

Undervalued

9.62

7.11

EV/EBITDA

Universal Health Services Inc. (UHS) has a current EV/EBITDA of 7.11. The 5-year average EV/EBITDA is 7.98. The thresholds are as follows: Strongly Undervalued below 6.25, Undervalued between 6.25 and 7.11, Fairly Valued between 8.84 and 7.11, Overvalued between 8.84 and 9.71, and Strongly Overvalued above 9.71. The current Forward EV/EBITDA of 7.11 falls within the Undervalued range.

9.30

EV/EBIT

Universal Health Services Inc. (UHS) has a current EV/EBIT of 9.30. The 5-year average EV/EBIT is 11.43. The thresholds are as follows: Strongly Undervalued below 8.24, Undervalued between 8.24 and 9.83, Fairly Valued between 13.03 and 9.83, Overvalued between 13.03 and 14.63, and Strongly Overvalued above 14.63. The current Forward EV/EBIT of 9.30 falls within the Undervalued range.

0.77

Universal Health Services Inc. (UHS) has a current PS of 0.77. The 5-year average PS is 0.76. The thresholds are as follows: Strongly Undervalued below 0.48, Undervalued between 0.48 and 0.62, Fairly Valued between 0.89 and 0.62, Overvalued between 0.89 and 1.03, and Strongly Overvalued above 1.03. The current Forward PS of 0.77 falls within the Historic Trend Line -Fairly Valued range.

6.78

P/OCF

Universal Health Services Inc. (UHS) has a current P/OCF of 6.78. The 5-year average P/OCF is 7.76. The thresholds are as follows: Strongly Undervalued below 3.86, Undervalued between 3.86 and 5.81, Fairly Valued between 9.71 and 5.81, Overvalued between 9.71 and 11.66, and Strongly Overvalued above 11.66. The current Forward P/OCF of 6.78 falls within the Historic Trend Line -Fairly Valued range.

11.95

P/FCF

Universal Health Services Inc. (UHS) has a current P/FCF of 11.95. The 5-year average P/FCF is 23.51. The thresholds are as follows: Strongly Undervalued below -29.49, Undervalued between -29.49 and -2.99, Fairly Valued between 50.01 and -2.99, Overvalued between 50.01 and 76.51, and Strongly Overvalued above 76.51. The current Forward P/FCF of 11.95 falls within the Historic Trend Line -Fairly Valued range.

Universal Health Services Inc (UHS) has a current Price-to-Book (P/B) ratio of 1.94. Compared to its 3-year average P/B ratio of 1.78 , the current P/B ratio is approximately 8.80% higher. Relative to its 5-year average P/B ratio of 1.74, the current P/B ratio is about 11.30% higher. Universal Health Services Inc (UHS) has a Forward Free Cash Flow (FCF) yield of approximately 6.96%. Compared to its 3-year average FCF yield of 5.68%, the current FCF yield is approximately 22.55% lower. Relative to its 5-year average FCF yield of 5.38% , the current FCF yield is about 29.45% lower.

1.94

P/B

Median3y

1.78

Median5y

1.74

6.96

FCF Yield

Median3y

5.68

Median5y

5.38

Competitors Valuation Multiple

The average P/S ratio for UHS's competitors is 0.67, providing a benchmark for relative valuation. Universal Health Services Inc Corp (UHS) exhibits a P/S ratio of 0.77, which is 15.01% above the industry average. Given its robust revenue growth of 13.43%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of UHS increased by 24.07% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 6.71 to 8.43.

The secondary factor is the Revenue Growth, contributed 13.43%to the performance.

Overall, the performance of UHS in the past 1 year is driven by Margin Expansion. Which is more sustainable.

13.43%

3.96B → 4.50B

Revenue Growth

25.63%

6.71 → 8.43

Margin Expansion

-14.99%

12.45 → 10.59

P/E Change

24.07%

179.42 → 222.60

Mkt Cap Growth

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Frequently Asked Questions

Is Universal Health Services Inc (UHS) currently overvalued or undervalued?

What is Universal Health Services Inc (UHS) fair value?

UHS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Universal Health Services Inc (UHS) is between 243.98 to 314.96 according to relative valuation methord.

How does UHS's valuation metrics compare to the industry average?

What is the current P/B ratio for Universal Health Services Inc (UHS) as of Dec 15 2025?

As of Dec 15 2025, Universal Health Services Inc (UHS) has a P/B ratio of 1.94. This indicates that the market values UHS at 1.94 times its book value.

What is the current FCF Yield for Universal Health Services Inc (UHS) as of Dec 15 2025?

As of Dec 15 2025, Universal Health Services Inc (UHS) has a FCF Yield of 6.96%. This means that for every dollar of Universal Health Services Inc’s market capitalization, the company generates 6.96 cents in free cash flow.

What is the current Forward P/E ratio for Universal Health Services Inc (UHS) as of Dec 15 2025?

As of Dec 15 2025, Universal Health Services Inc (UHS) has a Forward P/E ratio of 9.62. This means the market is willing to pay $9.62 for every dollar of Universal Health Services Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Universal Health Services Inc (UHS) as of Dec 15 2025?

As of Dec 15 2025, Universal Health Services Inc (UHS) has a Forward P/S ratio of 0.77. This means the market is valuing UHS at $0.77 for every dollar of expected revenue over the next 12 months.

UHS Valuation