Universal Health Services, Inc. (UHS) Stock Analysis
Score ACompounder · Grade B · Bearish
$166.61
$322.49
+93.6%
10/10
B
Compounder
Investment Thesis
Good opportunity: Solid company with good risk/reward at 10.0:1.
For New Investors
Quantitative score: high
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $322.49 (+93.6%). Significantly undervalued.
PEG-Based EPS
$333.21
FCF DCF Model
$333.21
EV/EBITDA
$333.21
Blended Fair Value
$322.49
Confidence
High
Methods
PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
86/120 points
Investable
ROE (3Y Avg)
16.4%
ROIC-WACC Spread
4.9%
D/E Ratio
0.8x
Current Ratio
1.1x
Interest Coverage
13x
FCF Positive Years
3/3
Quality Flags
- ROIC spread: 4.9pp (got 12/25 pts)
- Leverage: D/E 0.8x (9/15 pts)
Market Sentiment
Wall Street Consensus
$211.00
+26.6% Upside
16 analysts
Range: $190.00 — $310.00
Rating: Buy
Our model aligns with Wall Street consensus.
Trend & Technical
Price ($166.58) is 17.0% below SMA 200 ($200.64). Bearish trend. Caution on entry.
Tech Score 53/100 — Neutral technical picture. Mixed signals across indicators.
Risk & Reward
Asymmetry Ratio
10.00:1
Expected Return
+111.4%
Bull Upside
+200.0%
Bear Downside
-10.0%
Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of UHS?
Based on our multi-method conviction analysis, the estimated fair value of Universal Health Services, Inc. (UHS) is $322.49. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is high.
Is UHS a buy, sell, or hold?
UHS currently has a BUY rating with a conviction score of 10/10. Good opportunity: Solid company with good risk/reward at 10.0:1. Quantitative score: high.
Is UHS a high-quality stock?
Universal Health Services, Inc. has a quality grade of B (86/120 points), rated as Investable. Key metrics include ROE of 16.4%, ROIC-WACC spread of 4.9%, and D/E ratio of 0.8x.
What type of stock is UHS?
UHS is classified as a "compounder" in our framework. Low dividend (reinvesting): 0.5%, Low P/E: 7.0x, High FCF Yield: 8.1%, Moderate growth: 14.2%, Strong ROE: 20.9%
What do Wall Street analysts say about UHS?
16 Wall Street analysts have a consensus price target of $211.00 for UHS, representing +26.6% upside. Targets range from $190.00 to $310.00. The consensus recommendation is "Buy". Our model aligns with Wall Street consensus.
What are the risks of investing in UHS?
The risk/reward asymmetry ratio for UHS is 10.00:1, rated as Very Favorable. Excellent asymmetry: >3:1 ratio. Upside significantly outweighs downside. The expected return is +111.4%, with bull case upside of +200.0% and bear case downside of -10.0%.
What is the current trend for UHS?
UHS is in a bearish trend. Price ($166.58) is 17.0% below SMA 200 ($200.64). Bearish trend. Caution on entry. The technical score is 53/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.