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Universal Health Services, Inc. – General Medical and Surgical Hospitals
about uhs universal health services, inc. (uhs) is one of the nation's largest and most respected healthcare management companies, operating through its subsidiaries acute care hospitals, behavioral health facilities and ambulatory centers nationwide. founded in 1978, uhs subsidiaries now have more than 65,000 employees. the uhs business strategy is to build or purchase healthcare properties in rapidly growing markets and create a strong franchise based on exceptional service and effective cost control. our success comes from a responsive management style and a service philosophy based on integrity, competence and compassion.
Analysis Results
Intrinsic Value $505.37
Latest Price $137.70
Relative Value 73% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 6.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 1.02 0.989
2024 1.09 1.01
2025 1.15 1.04
2026 1.23 1.07
2027 1.3 1.09
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 39.0 billion. This corresponds to a present value of 31.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.2 billion. Adding in the terminal value gives a total present value of 36.9 billion.

There are presently 73.0 million outstanding shares, so the intrinsic value per share is 505.37.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,537,340,000
Current Cash 102,818,000
Current Liabilities 1,914,419,000
Current Debt 81,447,000
Non-Cash Working Capital (NCWC) 601,550,000
Change in NCWC 388,995,000
EBIT 1,003,555,000
Tax Provision 209,278,000
Depreciation and Amortization 581,861,000
Capital Expenditure -734,001,000
Unlevered Free Cash Flow 997,963,178
Current Assets 2,263,556,000
Current Cash 115,301,000
Current Liabilities 1,984,109,000
Current Debt 48,409,000
Non-Cash Working Capital (NCWC) 212,555,000
Change in NCWC 304,217,000
EBIT 1,363,094,000
Tax Provision 305,681,000
Depreciation and Amortization 533,213,000
Capital Expenditure -835,933,000
Unlevered Free Cash Flow 1,042,416,911
Current Assets 3,281,869,000
Current Cash 1,224,490,000
Current Liabilities 2,481,039,000
Current Debt 331,998,000
Non-Cash Working Capital (NCWC) -91,662,000
Change in NCWC -470,488,000
EBIT 1,358,354,000
Tax Provision 299,293,000
Depreciation and Amortization 510,493,000
Capital Expenditure -734,209,000
Unlevered Free Cash Flow 339,454,397
Current Assets 1,915,934,000
Current Cash 61,268,000
Current Liabilities 1,563,390,000
Current Debt 87,550,000
Non-Cash Working Capital (NCWC) 378,826,000
Change in NCWC -68,464,000
EBIT 1,215,908,000
Tax Provision 238,794,000
Depreciation and Amortization 490,392,000
Capital Expenditure -655,513,000
Unlevered Free Cash Flow 710,034,281
Current Assets 1,937,802,000
Current Cash 105,220,000
Current Liabilities 1,448,738,000
Current Debt 63,446,000
Non-Cash Working Capital (NCWC) 447,290,000
Change in NCWC 26,126,000
EBIT 1,175,262,000
Tax Provision 236,642,000
Depreciation and Amortization 453,076,000
Capital Expenditure -701,205,000
Unlevered Free Cash Flow 684,424,172
Current Assets 1,798,002,000
Current Cash 74,423,000
Current Liabilities 1,848,034,000
Current Debt 545,619,000
Non-Cash Working Capital (NCWC) 421,164,000
Change in NCWC -14,982,000
EBIT 1,280,178,000
Tax Provision 363,697,000
Depreciation and Amortization 447,883,000
Capital Expenditure -586,553,000
Unlevered Free Cash Flow 716,311,721
Current Assets 1,681,371,000
Current Cash 33,747,000
Current Liabilities 1,317,373,000
Current Debt 105,895,000
Non-Cash Working Capital (NCWC) 436,146,000
Change in NCWC -183,246,000
EBIT 1,276,072,000
Tax Provision 409,187,000
Depreciation and Amortization 416,608,000
Capital Expenditure -541,414,000
Unlevered Free Cash Flow 516,471,194
Current Assets 1,718,304,000
Current Cash 61,228,000
Current Liabilities 1,100,406,000
Current Debt 62,722,000
Non-Cash Working Capital (NCWC) 619,392,000
Change in NCWC 150,831,000
EBIT 1,243,580,000
Tax Provision 395,203,000
Depreciation and Amortization 398,618,000
Capital Expenditure -379,321,000
Unlevered Free Cash Flow 984,817,068
Current Assets 1,615,138,000
Current Cash 32,069,000
Current Liabilities 1,182,827,000
Current Debt 68,319,000
Non-Cash Working Capital (NCWC) 468,561,000
Change in NCWC 14,046,000
EBIT 1,071,574,000
Tax Provision 324,671,000
Depreciation and Amortization 375,624,000
Capital Expenditure -391,150,000
Unlevered Free Cash Flow 695,864,300
Current Assets 1,432,329,000
Current Cash 17,238,000
Current Liabilities 1,059,888,000
Current Debt 99,312,000
Non-Cash Working Capital (NCWC) 454,515,000
Change in NCWC -38,041,000
EBIT 954,439,000
Tax Provision 315,309,000
Depreciation and Amortization 337,356,000
Capital Expenditure -358,493,000
Unlevered Free Cash Flow 549,083,467
Current Assets 1,407,496,000
Current Cash 23,471,000
Current Liabilities 894,058,000
Current Debt 2,589,000
Non-Cash Working Capital (NCWC) 492,556,000
Change in NCWC 3,334,000
EBIT 961,688,000
Tax Provision 274,616,000
Depreciation and Amortization 308,690,000
Capital Expenditure -363,192,000
Unlevered Free Cash Flow 571,032,349

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