Universal Health Services, Inc.

Valuation Analysis

About the Company

Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, and outpatient and behavioral health care facilities in the United States. It operates through Acute Care Hospital Services and Behavioral Health Care Services segments. The company's hospitals offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic and coronary care, pediatric, pharmacy, and/or behavioral health services. It also provides commercial health insurance services; capital resources; and various management services, including central purchasing, information services, finance and control systems, facilities planning, physician recruitment, administrative personnel management, marketing, and public relations services.

Universal Health Services, Inc. Stock at a Glance

Universal Health Services, Inc. (UHS) is currently trading at $146.42 with a market capitalization of $8.9B. The trailing P/E ratio stands at 6.11x, with a forward P/E of 5.78x. The 52-week range spans from $140.08 to $246.33; the current price is 40.6% below the yearly high. Year-over-year revenue growth stands at +9.6%. The net profit margin stands at 8.56%.

💰 Dividend

Universal Health Services, Inc. pays an annual dividend of $0.80 per share, representing a yield of 0.55%. The payout ratio stands at 3.34%.

📊 Analyst Rating

17 analysts rate Universal Health Services, Inc. (UHS) on consensus: Buy. The average price target is $215.76, implying +47.36% from the current price. Analyst price targets range from $165.00 to $310.00.

Universal Health Services, Inc.: The Investment Case in Detail

Universal Health Services, Inc. (UHS) operates in the Healthcare — specifically Medical Care Facilities — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Wall Street consensus sits at Buy with an average price target implying roughly 47.36% upside from current levels — analyst sentiment is firmly constructive. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

Valuation in Context

The PEG ratio at 1.02 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric. The EV/EBITDA multiple of 5.25x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 47.36% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (7.03%).

Trading Data

💵 Dividend Info

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