Universal Health Services, Inc.

NYSE:UHS Stock Report

Market Cap: US$13.0b

Universal Health Services Valuation

Is UHS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of UHS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: UHS ($197.52) is trading below our estimate of fair value ($492.64)

Significantly Below Fair Value: UHS is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for UHS?

Key metric: As UHS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for UHS. This is calculated by dividing UHS's market cap by their current earnings.
What is UHS's PE Ratio?
PE Ratio12.7x
EarningsUS$1.03b
Market CapUS$12.98b

Price to Earnings Ratio vs Peers

How does UHS's PE Ratio compare to its peers?

The above table shows the PE ratio for UHS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.1x
THC Tenet Healthcare
4.6x-39.2%US$14.6b
EHC Encompass Health
23.1x9.6%US$10.0b
ENSG Ensign Group
34.3x18.0%US$8.2b
SEM Select Medical Holdings
18.5x11.9%US$4.8b
UHS Universal Health Services
12.7x8.5%US$13.0b

Price-To-Earnings vs Peers: UHS is good value based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (20.1x).

Price to Earnings Ratio vs Industry

How does UHS's PE Ratio compare vs other companies in the US Healthcare Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
THC Tenet Healthcare
4.6x-39.2%US$14.58b
NEUE NeueHealth
1.5xn/aUS$40.77m
AMS American Shared Hospital Services
4.9xn/aUS$19.08m
IDXG Interpace Biosciences
2.4xn/aUS$11.77m
UHS 12.7xIndustry Avg. 25.8xNo. of Companies11PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: UHS is good value based on its Price-To-Earnings Ratio (12.7x) compared to the US Healthcare industry average (25.2x).

Price to Earnings Ratio vs Fair Ratio

What is UHS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

UHS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.7x
Fair PE Ratio28x

Price-To-Earnings vs Fair Ratio: UHS is good value based on its Price-To-Earnings Ratio (12.7x) compared to the estimated Fair Price-To-Earnings Ratio (28x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst UHS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$197.52
US$246.08
+24.6%
9.7%US$285.00US$211.00n/a15
Nov ’25US$205.26
US$247.81
+20.7%
9.0%US$275.00US$211.00n/a15
Oct ’25US$224.66
US$240.20
+6.9%
7.1%US$274.00US$219.00n/a16
Sep ’25US$237.97
US$235.76
-0.9%
7.9%US$267.00US$189.00n/a16
Aug ’25US$215.82
US$230.27
+6.7%
8.7%US$256.00US$186.00n/a15
Jul ’25US$182.20
US$198.53
+9.0%
9.2%US$236.00US$156.00n/a15
Jun ’25US$189.80
US$194.20
+2.3%
7.6%US$226.00US$156.00n/a15
May ’25US$170.19
US$189.79
+11.5%
6.5%US$208.00US$156.00n/a14
Apr ’25US$175.21
US$188.00
+7.3%
6.9%US$208.00US$156.00n/a14
Mar ’25US$171.12
US$178.23
+4.2%
9.8%US$208.00US$144.00n/a13
Feb ’25US$163.14
US$162.38
-0.5%
8.5%US$190.00US$140.00n/a13
Jan ’25US$152.44
US$154.62
+1.4%
8.1%US$175.00US$140.00n/a13
Dec ’24US$137.70
US$150.15
+9.0%
6.5%US$170.00US$139.00n/a13
Nov ’24US$125.39
US$151.77
+21.0%
6.4%US$170.00US$140.00US$205.2613
Oct ’24US$125.73
US$155.86
+24.0%
6.4%US$172.00US$142.00US$224.6614
Sep ’24US$134.57
US$158.13
+17.5%
7.1%US$183.00US$142.00US$237.9715
Aug ’24US$139.26
US$157.33
+13.0%
7.7%US$183.00US$140.00US$215.8215
Jul ’24US$157.77
US$153.87
-2.5%
7.0%US$178.00US$139.00US$182.2015
Jun ’24US$131.14
US$152.87
+16.6%
5.9%US$170.00US$139.00US$189.8015
May ’24US$148.19
US$148.20
+0.007%
7.6%US$165.00US$124.00US$170.1915
Apr ’24US$127.10
US$141.57
+11.4%
8.3%US$167.00US$124.00US$175.2114
Mar ’24US$132.08
US$144.64
+9.5%
10.0%US$168.00US$120.00US$171.1214
Feb ’24US$152.67
US$143.27
-6.2%
13.3%US$168.00US$114.00US$163.1415
Jan ’24US$140.89
US$126.40
-10.3%
11.7%US$157.00US$110.00US$152.4415
Dec ’23US$130.20
US$123.60
-5.1%
10.3%US$157.00US$110.00US$137.7015
Nov ’23US$117.32
US$117.73
+0.4%
7.0%US$135.00US$105.00US$125.3915

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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