Universal Health ServicesUHS -0.30%85 Return-on-Tangible-Equity is 41.20% as of Mar. 2026, which is 14% below its 10-year median of 47.94. GuruFocus rates UHS with a GF Score™ of 85/100 and a GF Value™ of $228.22 (Significantly Undervalued). Among 583 Healthcare Providers & Services companies, Universal Health Services ranks better than 81.65% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Universal Health Services's annualized net income for the quarter that ended in Mar. 2026 was $1,395 Mil. Universal Health Services's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $3,385 Mil. Therefore, Universal Health Services's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 41.20%.
The historical rank and industry rank for Universal Health Services's Return-on-Tangible-Equity or its related term are showing as below:
UHS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 32.65 Med: 47.94 Max: 100.15
Current: 48.01
During the past 13 years, Universal Health Services's highest Return-on-Tangible-Equity was 100.15%. The lowest was 32.65%. And the median was 47.94%.
UHS's Return-on-Tangible-Equity is ranked better than 81.65% of 583
companies
in the Healthcare Providers & Services industry
Industry Median: 9.74
vs UHS: 48.01
Universal Health Services (NYSE:UHS) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Universal Health Services Return-on-Tangible-Equity Related Terms
Universal Health Services Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Universal Health Services's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Universal Health Services Return-on-Tangible-Equity Chart
UHS vs ENSG, EHC, PACS: Return-on-Tangible-Equity Comparison
For the Medical Care Facilities subindustry, Universal Health Services's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Universal Health Services Return-on-Tangible-Equity vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Universal Health Services's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Universal Health Services's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 41.20% mean?
Universal Health Services (UHS) has a Return-on-Tangible-Equity of 41.20% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Universal Health Services and its competitors. This is 14% below median its historical median of 47.94. Over the past decade, Universal Health Services' Return-on-Tangible-Equity has ranged from 32.65 to 100.15. According to the industry distribution chart, Universal Health Services ranks #107 out of 583 companies in the Healthcare Providers & Services industry, placing it in the top 18.4%.
Is Universal Health Services' Return-on-Tangible-Equity too high?
Universal Health Services' current Return-on-Tangible-Equity of 41.20% is 14% below median its 10-year median of 47.94. Over the past 10 years, this metric has ranged from a low of 32.65 to a high of 100.15. The Healthcare Providers & Services industry median Return-on-Tangible-Equity is 9.74. Universal Health Services' value of 41.20% is 323% above this industry median. Based on the distribution chart, Universal Health Services ranks #107 out of 583 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, Universal Health Services has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Universal Health Services' Return-on-Tangible-Equity compare to ENSG and EHC?
According to the Healthcare Providers & Services industry distribution chart, Universal Health Services ranks #107 out of 583 companies for Return-on-Tangible-Equity. This places Universal Health Services in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.74. Universal Health Services' value of 41.20% is 323% above this benchmark. Historically, Universal Health Services' own Return-on-Tangible-Equity has ranged from 32.65 to 100.15 over the past decade. While the company's 10-year median is 47.94 vs. the industry median of 9.74, Universal Health Services has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Healthcare Providers & Services company?
The median Return-on-Tangible-Equity among Healthcare Providers & Services companies is 9.74, based on 583 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Health Services's current Return-on-Tangible-Equity of 41.20% is 323% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Universal Health Services and its competitors. For the Healthcare Providers & Services industry, the median Return-on-Tangible-Equity is 9.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Health Services's current Return-on-Tangible-Equity is 41.20%, which is 14% below median its own 10-year median of 47.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Health Services stock overvalued right now?
Based on GuruFocus' analysis, Universal Health Services (UHS) is currently considered Significantly Undervalued. The stock's GF Value™ is $228.22, compared to a current price of $145.41 — trading 36.3% below its estimated fair value. The current Return-on-Tangible-Equity is 41.20%, which is 14% below median its 10-year median of 47.94 and 323% above the Healthcare Providers & Services industry median of 9.74. Universal Health Services' overall GF Score™ is 85/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Universal Health Services (UHS), the current Return-on-Tangible-Equity is 41.20% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Universal Health Services (UHS) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Health Services stock appears to be undervalued.
The current stock price of $145.41 is trading 36.3% below its estimated GF Value™ of $228.22.
GuruFocus considers Universal Health Services to be Significantly Undervalued.
Key valuation signals for UHS:
Return-on-Tangible-Equity: 41.20% (14% below median its 10-year median of 47.94)
GF Value™: $228.22 vs. price of $145.41 (36.3% below fair value)
Industry Position: 323% above the Healthcare Providers & Services median (#107 of 583)
No single metric tells the full story. See the UHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Health Services Inc offers healthcare services through its behavioral health centers, acute care hospitals, and related outpatient facilities. As of late 2025, the company operated 346 inpatient behavioral health centers, 29 acute care hospitals, and many supportive outpatient facilities. Its operations are concentrated in the U.S, particularly in Nevada (21% of 2025 operating profits), Texas (19%), and California (13%), although it does have some exposure to the UK behavioral health market (6% of 2025 sales) too. While its acute care services account for over 55% of revenue, the behavioral health centers sport higher margins and account for over 55% of pretax profits.
85GF Score
Get the complete analysis for UHS
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
UHS has been successfully added to your 
