Universal Health Services, Inc. (UHS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+76.1%

$312.86

vs $177.62 price

Levered DCF

$213.77

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.12

Grey zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	9.31×	10.46×	14.73×	15.26×	10.81×	12.43×	15.66×	13.94×
P/B	1.91×	1.79×	1.72×	1.74×	1.76×	1.85×	2.31×	2.02×
P/S	0.8×	0.75×	0.74×	0.77×	0.85×	1.01×	1.12×	1.01×
EV / EBITDA	7.01×	7.4×	9.22×	9.82×	7.93×	7.85×	9.88×	9.03×
Gross margin	90.4%	90.0%	89.3%	89.0%	88.7%	88.9%	89.0%	89.2%
Operating margin	11.5%	10.6%	8.2%	7.5%	10.8%	11.8%	10.7%	10.9%
Net margin	8.6%	7.2%	5.0%	5.0%	7.8%	8.2%	7.2%	7.2%
Current ratio	1.05×	1.27×	1.4×	1.33×	1.14×	1.32×	1.23×	1.34×
Debt / equity	0.76×	0.74×	0.87×	0.89×	0.75×	0.66×	0.78×	0.74×
Interest coverage	12.68×	8.97×	5.67×	7.89×	15.99×	12.45×	7.47×	7.58×
Dividend yield	0.4%	0.4%	0.5%	0.6%	0.6%	0.1%	0.4%	0.3%
Payout ratio	3.4%	4.7%	7.7%	8.7%	6.6%	1.8%	6.5%	4.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	20.5%	17.1%	11.7%	11.4%	16.3%	14.9%	14.8%	14.5%
Return on invested capital	11.3%	10.6%	7.4%	6.5%	9.3%	9.1%	9.2%	9.2%
Return on assets	9.3%	7.9%	5.1%	5.0%	7.6%	7.0%	7.0%	6.9%
Free cash flow yield	6.1%	9.4%	5.0%	2.5%	0.3%	13.9%	6.1%	4.9%
Earnings yield	10.7%	9.6%	6.8%	6.6%	9.3%	8.1%	6.4%	7.2%
Enterprise value	$19.2B	$16.8B	$15.8B	$15.5B	$15.1B	$14.7B	$17B	$14.8B
Net debt / EBITDA	1.96×	2.13×	3.06×	3.28×	2.33×	1.59×	2.47×	2.38×
Cash conversion cycle (days)	-59	-44	-37	-49	-65	-53	-34	-42