Universal Health Services owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. The company was founded in 1978 and is based in King of Prussia, Pennsylvania.
UHS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Universal Health Services Inc. To summarize, we found that Universal Health Services Inc ranked in the 62th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 91.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Universal Health Services Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 65. Notably, its equity weight is greater than merely 21.96% of US equities in the Healthcare sector yielding a positive free cash flow.
Universal Health Services Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 9.54% of tickers in our DCF set.
UHS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 9.54% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Universal Health Services, Inc. New York, June 23, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Universal Health Services, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
(Bloomberg) -- Paying kickbacks to doctors for referrals. Surgically implanting unneeded heart monitors. Aggravating troubled teenagers during psychiatric sessions to worsen their mental health.Health-care providers accused of bilking taxpayers by inflating Medicare or Medicaid expenses have paid billions of dollars in settlements with the federal government over the past decade for a variety of transgressions, some of which risked patients’ lives. Now the money is flowing the other way.Companies that settled cases involving overbilling or fraud -- among them Tenet Healthcare Corp., Universal Health Services Inc. and Beaumont Health -- received more than $36 billion in interest-free loans from a U.S. Health and Human Services Department program to help providers handle cash-flow shortag...