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. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 10, while the industry average is not provided, indicating a potential premium valuation. Additionally, the EV to EBITDA ratio is 7.18, and the PEG ratio is notably low at 0.14, suggesting limited growth expectations relative to its price.
In comparison to its peers, Universal Health Services, Inc. has a lower P/E ratio than Chemed Corp. at 56.91 and National HealthCare Corp. at 18.51, but it is higher than Surgery Partners, Inc. at 31.47. The company's recent stock performance shows a 1-week return of 4.31% and a year-to-date return of 14.01%, both outperforming the S&P 500's returns of 1.70% and 13.30%, respectively. However, the 1-year return of -12.64% significantly lags behind the S&P 500's 14.08%, reinforcing the notion that the stock may be overvalued.