Is Universal Health Services, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Universal Health Services, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its P/E ratio of 10, a Price to Book Value of 1.80, and an EV to EBITDA of 7.18. In comparison, peers such as Chemed Corp. have a significantly higher P/E ratio of 56.91, while National HealthCare Corp. shows a fair valuation with a P/E of 18.51.
Despite strong recent performance, with a 1-week return of 4.31% compared to the S&P 500's 1.70%, the longer-term outlook reveals a concerning 1-year return of -12.64% against the S&P 500's 14.08%. This suggests that while the stock may have short-term momentum, its overall valuation appears stretched relative to its peers and historical performance.