Universal Health Services Inc (UHS) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Universal Health Services Inc stock $447, price $196, upside +128.8%, quality 67 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $86.14 – $243.12 · fair‑value band $226.45 – $607.31 · the $195.50 price screens below the $447.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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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.
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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. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.
Stock analysis
Universal Health Services Inc (UHS) currently trades at $195.50, while our model-based Fair Value estimate is $447.22, implying the stock looks roughly 56% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $520.81 per share, and 23 of the 26 models we run sit above the $195.50 price.
Bear case: the Earnings-Based group reads lowest at $241.36, and 3 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $226.45 (bear) to $607.31 (bull), the price of $195.50 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 67/100 (solid quality), in the Healthcare sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Universal Health Services Inc reported revenue of $17.4B in FY2025 versus $12.6B in FY2021, a compound +8.3%/yr. Reported net income was $1.5B in FY2025, compounding +10.7%/yr from FY2021.
Key figures
Market cap $11.7B Large · P/E ratio 7.4 · P/S ratio 0.65 · EPS (TTM) $23.89 · Dividend yield 0.1% · Net margin 8.0% · Return on equity 19.7% · Return on assets (EBIT) 10.1% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 60 out of 100 (low confidence).
What moves the price
The share trades about 20% below its 52-week high and 39% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −1% fair-value upside, at 129%, UHS screens cheaper than that median.
Fair Value models
Bear$226.45Fair Value $447.22Bull$607.31
Price $195.50 · Upside +128.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($20.25 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, no officer or director bought or sold shares on the open market.
SaleElliot J Md Mba SussmanDirector674 shares at $190.06$128,099Mar 13, 2026
SaleWarren J. NimetzDirector3,817 shares at $223.31$852,356Nov 11, 2025
Plus 6 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.77/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+9.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.5%
Start year 2020 (pandemic). Over 10 years: +6.7% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.2%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+14.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+14.4%
Dividend (yield on the price)0.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.15.9% vs 13.1%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.12% → 12%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+7.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +5.3% a year for the price and +2.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Modest profitability metrics offer limited support for pricing power in this hospital operator while thin evidence across most factors leaves no clear durable competitive signals.
Main risk: Legislative changes such as the One Big Beautiful Budget Act could cut UHS's annual net benefit from state Medicaid supplemental payment programs by hundreds of millions of dollars by 2032, reducing revenues and pressuring margins at its facilities.
Bull case: Stronger volume growth in acute care and behavioral health combined with efficiency gains from AI tools in revenue cycle and operations could help UHS offset reimbursement pressures and sustain or improve margins.
Bear case: If ongoing regulatory cuts to supplemental payments and adverse litigation outcomes materialise without sufficient offsets, margins could stay under sustained pressure and some facilities might face ongoing losses or operational constraints.
Universal Health Services shows steady rises in acute and behavioral admissions but faces pressure from a shift toward lower-margin medical cases instead of surgeries plus slower ramps at newer hospitals. Executives now expect full-year results at the lower end of 2026 guidance amid these trends and upcoming Medicaid headwinds. Our models see the shares as undervalued. Will the push into outpatient services and Talkspace integration deliver more growth than the mix shift takes away?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Medical Care Facilities · 233 stocks
Beats the industry median on 11/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score67 · Top 25%
Fair Value upside+128.8% · Top 25%
Profitability
Return on equity (12 months)19.7% · Top 25%
Return on assets9.3% · Top 25%
Net margin (12 months)8.0% · Above median
Operating margin (12 months)0.0% · Bottom 25%
Growth and dividend
Revenue growth (quarter YoY)5.3% · Below median
Dividend yield (12 months)0.1% · Bottom 25%
Balance sheet
Debt / equity0.55× · Highest 25%
Valuation Multiplesvs Medical Care Facilities median · lower = cheaper
P/E (12 months)7.4× · Cheapest 25%
P/B1.61× · Cheaper than median
P/S (12 months)0.65× · Cheapest 25%
Price / free cash flow (fiscal year)13.8× · Cheaper than median
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Cite: Fair Value Calculator (2026). "Universal Health Services Inc Fair Value". https://www.fairvalue-calculator.com/stock/UHS
Frequently asked questions
Is Universal Health Services Inc (UHS) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $447.22 versus a price of $195.50, about +129% upside (undervalued).
What is the fair value of UHS?
Our model-based fair value for Universal Health Services Inc is $447.22 (as of Nov 6, 2026), built from audited fundamentals. The current price: $195.50.
What is the quality score of UHS?
Universal Health Services Inc has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Universal Health Services Inc (UHS)?
Our model-based price target is the fair value of $447.22 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario $226.45, optimistic scenario $607.31. It is a calculation from audited fundamentals, not an analyst target.
What is the Universal Health Services Inc stock forecast for 2026?
Our models put fair value at $447.22, about +129% upside versus a price of $195.50 (undervalued). Cautious scenario $226.45, optimistic scenario $607.31. The calculation is refreshed regularly with new filings.
What is the revenue of Universal Health Services Inc (UHS)?
Universal Health Services Inc reported trailing-twelve-month revenue of about $18.1B (latest available figure, as of Nov 6, 2026).
Does Universal Health Services Inc pay a dividend?
Universal Health Services Inc currently shows a dividend yield of 0.10% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Universal Health Services Inc (UHS) and when is the ex-dividend date?
Universal Health Services Inc pays a dividend of $0.2 per share a year, a dividend yield of 0.1%. The last ex-dividend date was Sep 1, 2026. A dividend has been paid every year since 2003. The payout ratio is 0.9% of earnings (on adjusted earnings, reported 0.8%). Free cash flow covers the dividend 82.15 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Universal Health Services Inc (UHS)?
For today's price to be fair in a discounted-cash-flow model, Universal Health Services Inc would have to grow free cash flow by +7.8 % per year for five years (discount rate 9.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.5 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of UHS use?
Our models discount Universal Health Services Inc at 9.3 %: a base by market capitalisation (large), damped by beta 1.03, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Universal Health Services Inc that is +7.8 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.3 %) and the same formula as our fair value.
How much growth has Universal Health Services Inc (UHS) delivered so far?
Over the past 5 years revenue at Universal Health Services Inc grew +8.5 % a year. The price currently implies free-cash-flow growth of +7.8 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Universal Health Services Inc (UHS) growing?
The median revenue growth in the sector is +6.2 % a year. That is the yardstick for the growth priced into Universal Health Services Inc (+7.8 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Universal Health Services Inc (UHS)?
The free-cash-flow yield on the price is 7.25 %: that much free cash flow Universal Health Services Inc produces per unit of market value. When it exceeds the discount rate of our models (9.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Universal Health Services Inc (UHS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Universal Health Services Inc it is $447.22 per share (as of Nov 6, 2026), against a price of $195.50. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Universal Health Services Inc stock overvalued or undervalued in 2026?
As of Nov 6, 2026, UHS trades below its calculated fair value: price $195.50, fair value $447.22, a gap of about +129% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of UHS?
No. The price is what the market pays today ($195.50); the fair value is what the company's own numbers justify ($447.22). For Universal Health Services Inc the two are $251.72 per share apart. That gap is exactly why we show both numbers side by side.
How much is Universal Health Services Inc worth?
The market values Universal Health Services Inc at about $11.7B (market capitalisation, as of Nov 6, 2026). Per share that is $195.50; our models calculate a fair value of $447.22 per share.
What do the bullish and bearish scenarios say about UHS?
Our models span a range for Universal Health Services Inc: cautious scenario $226.45, base $447.22, optimistic $607.31 per share (as of Nov 6, 2026, price $195.50). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of UHS?
Universal Health Services Inc trades at a price-to-earnings ratio of 7.4 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $447.22 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 9.0 (reported for FY2025: 8.5). Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 6 of the years ex one-offs: 13.7. Other multiples: PEG 1.2, P/B 1.6, P/S 0.6, EV/EBITDA 5.8.
What is the PEG ratio of UHS?
The PEG ratio of Universal Health Services Inc is 1.16 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Universal Health Services Inc (UHS)?
Balance-sheet figures for Universal Health Services Inc (as of Nov 6, 2026): return on equity 19.7%, debt of 0.55 per unit of equity. They feed the Quality Score of 67/100, which measures business quality independently of the share price.
How far is UHS from its 52-week high?
Universal Health Services Inc trades at $195.50, about 20% below its 52-week high of $243.12 and 39% above the low of $141.00 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $447.22 is for.
Which stocks are comparable to Universal Health Services Inc?
From the same area (Healthcare) we also value HCA Healthcare, Inc, Fresenius SE, Tenet Healthcare Corporation, Dr. Sulaiman Al Habib Medical Services Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Universal Health Services Inc stock attractive at the current price?
The data as of Nov 6, 2026: price $195.50, calculated fair value $447.22 (+129%), Quality Score 67/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of UHS calculated?
We run Universal Health Services Inc through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $447.22 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Universal Health Services Inc currently trades 56% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Universal Health Services Inc (UHS)?
The closing price on Nov 6, 2026 was $195.50. Our model-based fair value is $447.22, about +129% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Universal Health Services Inc right now?
The price is below even our cautious bear case ($226.45). The market is more pessimistic than our downside scenario. The model range is unusually wide ($226.45 to $607.31). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality.
Where does the earnings growth of Universal Health Services Inc (UHS) come from?
Earnings per share at Universal Health Services Inc grew +11.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share +11.3 %, EBIT margin −3.0 %, tax rate +2.2 %, residual (interest, one-offs) +0.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Universal Health Services Inc
How large is the market capitalisation of Universal Health Services Inc (UHS)?
The market capitalisation of Universal Health Services Inc is $11.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Universal Health Services Inc (UHS)?
The price-to-sales ratio of Universal Health Services Inc is 0.65 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Universal Health Services Inc (UHS)?
Earnings per share at Universal Health Services Inc are $23.89 (price ÷ EPS = P/E 7.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Universal Health Services Inc (UHS)?
The dividend yield of Universal Health Services Inc is 0.1% (payout 0.9%, on adjusted earnings, reported 0.8%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Universal Health Services Inc (UHS)?
The net margin of Universal Health Services Inc is 8.0% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Universal Health Services Inc (UHS)?
The return on equity (ROE) of Universal Health Services Inc is 19.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Universal Health Services Inc (UHS)?
On an EBIT basis the return on assets of Universal Health Services Inc is 10.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
How fast is revenue growing at Universal Health Services Inc (UHS)?
Revenue at Universal Health Services Inc is growing +5.3% versus a year earlier (3y avg +9.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Universal Health Services Inc (UHS)?
Earnings per share at Universal Health Services Inc are growing −10.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Universal Health Services Inc (UHS) carry?
The net debt of Universal Health Services Inc is $5.4B (fiscal year 2025, ≈ 6.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026