Is Universal Health Services, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Universal Health Services, Inc. has moved from fair to expensive, indicating that the stock is overvalued. Key valuation ratios include a P/E ratio of 10, an EV to EBITDA of 7.18, and a Price to Book Value of 1.80. In comparison, peers such as National HealthCare Corp. have a P/E of 18.51, while Chemed Corp. shows a significantly higher P/E of 56.91, highlighting that Universal Health Services, Inc. is trading at a lower valuation relative to some competitors.
The company's recent stock performance shows a decline of 19.85% over the past year compared to a 17.14% gain in the S&P 500, reinforcing the notion that it may be overvalued given its underperformance against the broader market. Overall, the combination of high valuation ratios and poor recent returns suggests that Universal Health Services, Inc. is currently overvalued.