UHS
Universal Health Services Inc
Price:  
182.25 
USD
Volume:  
518,644
United States | Health Care Providers & Services

UHS Fair Value

10.8 %
Upside

What is the fair value of UHS?

As of 2025-07-09, the Fair Value of Universal Health Services Inc (UHS) is 201.94 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 182.25 USD, the upside of Universal Health Services Inc is 10.8%.

Is UHS a good investment?

With the market price of 182.25 USD and our fair value calculation, Universal Health Services Inc (UHS) is a good investment. Investing in UHS stocks now will result in a potential gain of 10.8%.

182.25 USD
Stock Price
201.94 USD
Fair Price
FAIR VALUE CALCULATION

UHS Fair Value

Peter Lynch's formula is:

UHS Fair Value
= Earnings Growth Rate x TTM EPS
UHS Fair Value
= 10.9 x 18.57
UHS Fair Value
= 201.94

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income944991.59675.61717.81,142.1894
YoY growth15.8%5%-31.9%6.2%59.1%10.9%

UHS Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Genesis Healthcare Inc18,57015.18-82.7%
Tenet Healthcare Corp16,01315.7391.59127.2%
Encompass Health Corp11,9284.948.37-59.1%
Ensign Group Inc8,3845.4128.51-11.9%
Acadia Healthcare Company Inc2,222250.91111.1%
Select Medical Holdings Corp1,9142.249.1230.9%
Brookdale Senior Living Inc1,636-1-5.06-172.5%
National Healthcare Corp1,6017174.468.6%
Extendicare Inc1,1220.923.0172%
Hanger Inc732123.8327.3%

UHS Fair Value - Key Data

Market Cap (mil)11,744
P/E9.8x
Forward P/E9.5x
EPS18.57
Avg earnings growth rate10.9%
TTM earnings1,197

UHS Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.