Latest Ratios: P/E Ratio 7.0x · EV/EBITDA 5.9x · ROE 21.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $10.1B | $14.1B | $12.2B | $10.7B | $10.4B | $10.9B | $11.8B | $12.8B | $10.9B | $10.9B | $10.5B |
| Enterprise Value | $15.5B | $19.4B | $17.0B | $15.9B | $15.6B | $15.3B | $14.7B | $17.0B | $14.8B | $14.9B | $14.6B |
| P/E Ratio → | 6.98 | 9.44 | 10.67 | 14.90 | 15.41 | 10.97 | 12.51 | 15.71 | 14.01 | 14.51 | 14.90 |
| P/S Ratio | 0.58 | 0.81 | 0.77 | 0.75 | 0.78 | 0.86 | 1.02 | 1.12 | 1.01 | 1.05 | 1.07 |
| P/B Ratio | 1.40 | 1.90 | 1.80 | 1.72 | 1.74 | 1.75 | 1.84 | 2.29 | 2.00 | 2.16 | 2.27 |
| P/FCF | 11.89 | 16.55 | 10.84 | 20.37 | 39.70 | 387.06 | 7.24 | 16.48 | 20.65 | 19.05 | 78.54 |
| P/OCF | 5.41 | 7.54 | 5.89 | 8.43 | 10.44 | 12.28 | 4.99 | 8.88 | 8.15 | 9.23 | 8.12 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.12 | 1.07 | 1.12 | 1.16 | 1.21 | 1.28 | 1.50 | 1.38 | 1.43 | 1.49 |
| EV / EBITDA | 5.92 | 7.43 | 7.51 | 9.14 | 9.82 | 8.07 | 7.89 | 9.98 | 9.10 | 8.61 | 8.58 |
| EV / EBIT | 7.75 | 9.14 | 10.12 | 13.89 | 15.68 | 11.11 | 10.85 | 13.85 | 12.54 | 11.73 | 11.52 |
| EV / FCF | — | 22.87 | 15.14 | 30.37 | 59.42 | 545.57 | 9.06 | 21.97 | 28.00 | 25.97 | 109.32 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 90.4% | 90.4% | 90.0% | 89.3% | 89.0% | 88.7% | 88.9% | 89.0% | 89.2% | 89.4% | 89.4% |
| Operating Margin | 11.5% | 11.5% | 10.6% | 8.2% | 7.5% | 10.8% | 11.8% | 10.7% | 10.9% | 12.3% | 13.1% |
| Net Profit Margin | 8.6% | 8.6% | 7.2% | 5.0% | 5.0% | 7.8% | 8.2% | 7.2% | 7.2% | 7.2% | 7.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 21.0% | 21.0% | 17.6% | 11.8% | 11.1% | 15.7% | 15.7% | 14.7% | 14.8% | 15.6% | 15.3% |
| ROA | 9.8% | 9.8% | 8.0% | 5.2% | 5.1% | 7.5% | 7.5% | 7.1% | 7.1% | 7.1% | 7.0% |
| ROIC | 12.3% | 12.3% | 10.9% | 7.8% | 6.9% | 10.2% | 10.6% | 9.5% | 9.6% | 10.8% | 11.6% |
| ROCE | 16.0% | 16.0% | 13.9% | 10.0% | 8.8% | 12.3% | 12.9% | 12.2% | 12.5% | 14.3% | 14.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.74 | 0.74 | 0.73 | 0.87 | 0.88 | 0.74 | 0.65 | 0.77 | 0.73 | 0.80 | 0.90 |
| Debt / EBITDA | 2.11 | 2.11 | 2.19 | 3.08 | 3.32 | 2.40 | 2.24 | 2.53 | 2.46 | 2.34 | 2.44 |
| Net Debt / Equity | — | 0.72 | 0.71 | 0.85 | 0.87 | 0.72 | 0.46 | 0.76 | 0.71 | 0.78 | 0.89 |
| Net Debt / EBITDA | 2.06 | 2.06 | 2.13 | 3.01 | 3.26 | 2.34 | 1.59 | 2.49 | 2.39 | 2.29 | 2.42 |
| Debt / FCF | — | 6.32 | 4.30 | 10.00 | 19.73 | 158.51 | 1.83 | 5.48 | 7.36 | 6.92 | 30.79 |
| Interest Coverage | 13.51 | 13.51 | 8.96 | 5.53 | 7.80 | 16.15 | 12.45 | 7.55 | 7.63 | 8.88 | 10.84 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.05 | 1.05 | 1.27 | 1.40 | 1.33 | 1.14 | 1.32 | 1.23 | 1.34 | 0.97 | 1.28 |
| Quick Ratio | 0.98 | 0.98 | 1.17 | 1.29 | 1.21 | 1.04 | 1.25 | 1.12 | 1.24 | 0.90 | 1.18 |
| Cash Ratio | 0.04 | 0.04 | 0.06 | 0.06 | 0.05 | 0.06 | 0.49 | 0.04 | 0.07 | 0.04 | 0.03 |
| Asset Turnover | — | 1.09 | 1.09 | 1.02 | 0.99 | 0.97 | 0.86 | 0.98 | 0.96 | 0.97 | 0.95 |
| Inventory Turnover | 7.15 | 7.15 | 7.19 | 7.06 | 6.75 | 6.90 | 6.76 | 7.83 | 7.89 | 8.12 | 8.23 |
| Days Sales Outstanding | — | 54.70 | 50.22 | 57.20 | 54.96 | 50.43 | 54.60 | 50.07 | 51.16 | 52.63 | 53.80 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.4% | 0.4% | 0.5% | 0.6% | 0.6% | 0.1% | 0.4% | 0.3% | 0.4% | 0.4% |
| Payout Ratio | 3.4% | 3.4% | 4.7% | 7.7% | 8.7% | 6.6% | 1.8% | 6.5% | 4.8% | 5.1% | 5.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 14.3% | 10.6% | 9.4% | 6.7% | 6.5% | 9.1% | 8.0% | 6.4% | 7.1% | 6.9% | 6.7% |
| FCF Yield | 8.4% | 6.0% | 9.2% | 4.9% | 2.5% | 0.3% | 13.8% | 6.1% | 4.8% | 5.2% | 1.3% |
| Buyback Yield | 9.6% | 6.9% | 5.5% | 5.1% | 8.0% | 11.3% | 1.8% | 6.0% | 3.6% | 3.3% | 3.4% |
| Total Shareholder Yield | 10.1% | 7.3% | 5.9% | 5.6% | 8.6% | 11.9% | 1.9% | 6.4% | 4.0% | 3.7% | 3.7% |
| Shares Outstanding | — | $64M | $68M | $70M | $74M | $84M | $86M | $89M | $94M | $96M | $98M |
Labor cost inflation volatility
According to current market data, UHS trades at a forward P/E of 6.21, a valuation that appears significantly compressed compared to broader healthcare peers, suggesting that investors may be applying a conglomerate discount to the company's combined acute care and behavioral health service model.
The low P/E and EV/EBITDA multiples imply that the market is pricing in limited growth or significant long-term margin erosion. This valuation warrants further investigation into whether the behavioral health segment's defensive characteristics are being unfairly penalized by the cyclical risks inherent in the acute care business.
Based on reported financial statements, UHS has maintained a relatively stagnant ROIC trend, hovering near 3% over the last ten quarters, which indicates that the company's massive investment in physical hospital infrastructure has yet to generate returns that meaningfully exceed its likely cost of capital.
The persistent gap between ROIC and the company's capital intensity suggests that management's strategy of facility expansion is not currently driving compounding value. Investors should monitor whether future capital allocation shifts toward higher-margin behavioral health assets can improve these returns over the medium term.
As reported in recent quarterly filings, the company's cash conversion cycle has exhibited extreme volatility, swinging from -403 days in 2025Q3 to -173 days in 2024Q1, which suggests that UHS relies heavily on aggressive accounts payable management to maintain its liquidity position.
The reliance on extended payment terms to suppliers may mask underlying operational inefficiencies in the revenue cycle. This pattern warrants caution, as any shift in supplier leverage or regulatory payment timing could rapidly tighten the company's available cash flow.
Data from recent balance sheets indicates that the current ratio has fluctuated between 1.03 and 1.40 over the last ten quarters, suggesting that UHS maintains a relatively thin liquidity buffer that could leave the firm vulnerable to sudden, unexpected operational shocks or regulatory reimbursement delays.
With cash reserves remaining low, the company appears to prioritize capital deployment into growth and buybacks over maintaining a robust cash cushion. This strategy may be sustainable in stable environments but could prove problematic if the acute care segment faces a prolonged period of volume contraction.
As noted in financial disclosures, the commonly cited gross margin of approximately 90% is a misleading metric for this business model, as it systematically excludes the massive clinical labor costs that represent the true primary expense of operating a hospital network.
Analysts should instead focus on operating margins and SWB-to-revenue ratios to gauge true earning power. Relying on gross margin in this sector obscures the structural impact of nursing shortages and wage inflation, which are the most critical determinants of long-term profitability for UHS.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying UHS stock.
Universal Health Services, Inc.'s current P/E ratio is 7.0x. The historical average is 16.0x.
Universal Health Services, Inc.'s current EV/EBITDA is 5.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.1x.
Universal Health Services, Inc.'s return on equity (ROE) is 21.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 14.5%.
Based on historical data, Universal Health Services, Inc. is trading at a P/E of 7.0x. Compare with industry peers and growth rates for a complete picture.
Universal Health Services, Inc.'s current dividend yield is 0.49% with a payout ratio of 3.4%.
Universal Health Services, Inc. has 90.4% gross margin and 11.5% operating margin. Operating margin between 10-20% is typical for established companies.
Universal Health Services, Inc.'s Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.