What is Universal Health Services, Inc. (UHS) DCF Fair Value and Intrinsic Value in 2026?

Universal Health Services, Inc. (UHS) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Universal Health Services, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Universal Health Services, Inc. operates in the Healthcare sector (Medical Care Facilities) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Universal Health Services, Inc.'s financial health rating and Piotroski F-Score?

Universal Health Services, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Universal Health Services, Inc. (UHS) for quarterly SEC filing thesis breaks?

LocalAlpha audits Universal Health Services, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksUHS

UHS

Universal Health Services, Inc.Healthcare / Medical Care FacilitiesINTACT

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. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.

Share Price

$172.72

52W: $140.08 - $246.33

DCF Fair Value

$85.53

-101.9% Premium

Thesis Hub

P/E (TTM)

7.2x

ROIC

8.3%

Operating Margin

11.1%

FCF Yield

4.9%

Debt / Equity

0.69x

Piotroski Score

7/9

Altman Z-Score

5.28

Market Cap

$10.2B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($85.53)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$85.53

MOS Buy Target (-25%)

$64.15

Valuation Overlays: DCF Fair Value ($85.53) 25% MOS Buy Target ($64.15) Revised Graham ($370.83) Graham Number ($262.82)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$172.72

DCF Fair Value

$83.27

-107.4% Premium

Starting Free Cash Flow ($M)$498M

$100M$498M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.5%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$5,200M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$4.1B

PV of Terminal Value

$5.4B

Implied Enterprise Value

$9.5B

Implied Equity Value

$4.3B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$525	$554	$585	$617	$651	$680	$711	$743	$776	$811
Present Value (PV)	$482	$467	$452	$437	$423	$406	$389	$373	$357	$343

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number+34.3% MoS

$262.82

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $24.08BVPS: $127.49

Revised Graham Formula+53.4% MoS

$370.83

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings5.3% Yield

$9.10 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.5BYield: 5.3%

Reverse DCF: Market Growth Expectation

MODEST BARRIER

4.3% CAGR (Next 10 Yrs)

At the current price of $172.72, the market is assuming the business will compound Free Cash Flow at 4.3% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil UHS with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Universal Health Services, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 11.1% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Universal Health Services, Inc. (UHS) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Universal Health Services, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Universal Health Services, Inc. has an estimated DCF intrinsic fair value of $85.53 per share compared to its current market price of $172.72. This represents an estimated 101.9% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $262.82.