UHS Valuation

Universal Health Services Inc

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181.580

+0.36(0.199%)1D

Overview
Forecast
Valuation
Earnings

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 8.64 is considered Undervalued compared with the five-year average of 11.80. The fair price of Universal Health Services Inc (UHS) is between 248.60 to 309.94 according to relative valuation methord. Compared to the current price of 181.58 USD , Universal Health Services Inc is Undervalued By 26.96%.

Relative Value

Fair Zone

248.60-309.94

Current Price：181.58

26.96%

Undervalued

8.64

Trailing

Forward

6.53

EV/EBITDA

Universal Health Services Inc. (UHS) has a current EV/EBITDA of 6.53. The 5-year average EV/EBITDA is 8.00. The thresholds are as follows: Strongly Undervalued below 6.31, Undervalued between 6.31 and 7.16, Fairly Valued between 8.85 and 7.16, Overvalued between 8.85 and 9.69, and Strongly Overvalued above 9.69. The current Forward EV/EBITDA of 6.53 falls within the Undervalued range.

8.64

EV/EBIT

Universal Health Services Inc. (UHS) has a current EV/EBIT of 8.64. The 5-year average EV/EBIT is 11.50. The thresholds are as follows: Strongly Undervalued below 8.46, Undervalued between 8.46 and 9.98, Fairly Valued between 13.03 and 9.98, Overvalued between 13.03 and 14.55, and Strongly Overvalued above 14.55. The current Forward EV/EBIT of 8.64 falls within the Undervalued range.

0.66

Universal Health Services Inc. (UHS) has a current PS of 0.66. The 5-year average PS is 0.76. The thresholds are as follows: Strongly Undervalued below 0.49, Undervalued between 0.49 and 0.62, Fairly Valued between 0.90 and 0.62, Overvalued between 0.90 and 1.04, and Strongly Overvalued above 1.04. The current Forward PS of 0.66 falls within the Historic Trend Line -Fairly Valued range.

6.02

P/OCF

Universal Health Services Inc. (UHS) has a current P/OCF of 6.02. The 5-year average P/OCF is 7.94. The thresholds are as follows: Strongly Undervalued below 3.55, Undervalued between 3.55 and 5.75, Fairly Valued between 10.13 and 5.75, Overvalued between 10.13 and 12.32, and Strongly Overvalued above 12.32. The current Forward P/OCF of 6.02 falls within the Historic Trend Line -Fairly Valued range.

10.81

P/FCF

Universal Health Services Inc. (UHS) has a current P/FCF of 10.81. The 5-year average P/FCF is 19.47. The thresholds are as follows: Strongly Undervalued below -67.32, Undervalued between -67.32 and -23.92, Fairly Valued between 62.87 and -23.92, Overvalued between 62.87 and 106.27, and Strongly Overvalued above 106.27. The current Forward P/FCF of 10.81 falls within the Historic Trend Line -Fairly Valued range.

Universal Health Services Inc (UHS) has a current Price-to-Book (P/B) ratio of 1.64. Compared to its 3-year average P/B ratio of 1.73 , the current P/B ratio is approximately -5.01% higher. Relative to its 5-year average P/B ratio of 1.73, the current P/B ratio is about -5.14% higher. Universal Health Services Inc (UHS) has a Forward Free Cash Flow (FCF) yield of approximately 7.80%. Compared to its 3-year average FCF yield of 5.38%, the current FCF yield is approximately 44.91% lower. Relative to its 5-year average FCF yield of 6.00% , the current FCF yield is about 30.13% lower.

1.64

P/B

Median3y

1.73

Median5y

1.73

7.80

FCF Yield

Median3y

5.38

Median5y

6.00

Competitors Valuation Multiple

The average P/S ratio for UHS's competitors is 1.26, providing a benchmark for relative valuation. Universal Health Services Inc Corp (UHS) exhibits a P/S ratio of 0.66, which is -47.66% above the industry average. Given its robust revenue growth of 9.63%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

UHS.N

Universal Health Services Inc

Tenet Healthcare Corp

Brookdale Senior Living Inc

0.59

4.55%

1.83B

Performance Decomposition

Market capitalization of UHS decreased by 20.57% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 7.53 to 8.46.

The secondary factor is the Revenue Growth, contributed 9.63%to the performance.

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

9.63%

3.91B → 4.28B

Revenue Growth

12.35%

7.53 → 8.46

Margin Expansion

-42.55%

16.68 → 9.58

P/E Change

-20.57%