Is Universal Health Services, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Universal Health Services, Inc. moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a P/E ratio of 10, a Price to Book Value of 1.80, and an EV to EBITDA ratio of 7.18. In comparison to peers, Chemed Corp. has a much higher P/E of 56.91, while National HealthCare Corp. presents a more reasonable P/E of 18.51, highlighting the disparity in valuation within the industry.
Recent stock performance shows that Universal Health Services, Inc. has underperformed compared to the S&P 500 over the past year, with a return of -7.89% versus the S&P 500's 13.36%. This trend reinforces the notion that the stock may be overvalued given its lack of competitive returns in the market.