Universal Health ServicesUHS -0.30%85 WACC % is 6.83% as of Jun. 24, 2026, which is 14% below its 10-year median of 7.97. GuruFocus rates UHS with a GF Score™ of 85/100 and a GF Value™ of $228.22 (Significantly Undervalued). Among 695 Healthcare Providers & Services companies, Universal Health Services ranks better than 61.73% on this metric.
As of today (2026-06-24), Universal Health Services's weighted average cost of capital is 6.83%%. Universal Health Services's ROIC % is 12.06% (calculated using TTM income statement data).
Universal Health Services generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
For a comprehensive WACC calculation, please access the WACC Calculator.
Universal Health Services (NYSE:UHS) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Universal Health Services's weighted average cost of capital is 6.83%%. Universal Health Services's ROIC % is 12.06% (calculated using TTM income statement data).
Universal Health Services generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
* 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.
For the Medical Care Facilities subindustry, Universal Health Services's WACC %, along with its competitors' market caps and WACC % 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 WACC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Universal Health Services's WACC % distribution charts can be found below:
* The bar in red indicates where Universal Health Services's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Universal Health Services's market capitalization (E) is $8802.591 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Universal Health Services's latest one-year quarterly average Book Value of Debt (D) is $5101.0734 Mil.
a) weight of equity = E / (E + D) = 8802.591 / (8802.591 + 5101.0734) = 0.6331
b) weight of debt = D / (E + D) = 5101.0734 / (8802.591 + 5101.0734) = 0.3669
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.408%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Universal Health Services's beta is 0.8477.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.408% + 0.8477 * 6% = 9.4942%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Universal Health Services's interest expense (positive number) was $149.019 Mil. Its total Book Value of Debt (D) is $5101.0734 Mil.
Cost of Debt = 149.019 / 5101.0734 = 2.9213%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 472.597 / 2020.829 = 23.39%.
* 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 (UHS) has a WACC % of 6.83% as of Jun. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Universal Health Services and its competitors. This is 14% below median its historical median of 7.97. Over the past decade, Universal Health Services' WACC % has ranged from 5.41 to 10.11. According to the industry distribution chart, Universal Health Services ranks #266 out of 695 companies in the Healthcare Providers & Services industry, placing it in the top 38.3%.
Is Universal Health Services' WACC % too high?
Universal Health Services' current WACC % of 6.83% is 14% below median its 10-year median of 7.97. Over the past 10 years, this metric has ranged from a low of 5.41 to a high of 10.11. The Healthcare Providers & Services industry median WACC % is 8.63. Universal Health Services' value of 6.83% is 20.9% below this industry median. Based on the distribution chart, Universal Health Services ranks #266 out of 695 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. 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' WACC % compare to ENSG and EHC?
According to the Healthcare Providers & Services industry distribution chart, Universal Health Services ranks #266 out of 695 companies for WACC %. This puts Universal Health Services in the upper half of its industry. The industry median WACC % is 8.63. Universal Health Services' value of 6.83% is 20.9% below this benchmark. Historically, Universal Health Services' own WACC % has ranged from 5.41 to 10.11 over the past decade. While the company's 10-year median is 7.97 vs. the industry median of 8.63, Universal Health Services has consistently been below 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 WACC % for a Healthcare Providers & Services company?
The median WACC % among Healthcare Providers & Services companies is 8.63, based on 695 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Health Services's current WACC % of 6.83% is 20.9% below 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 WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Universal Health Services and its competitors. For the Healthcare Providers & Services industry, the median WACC % is 8.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Health Services's current WACC % is 6.83%, which is 14% below median its own 10-year median of 7.97. 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 WACC % is 6.83%, which is 14% below median its 10-year median of 7.97 and 20.9% below the Healthcare Providers & Services industry median of 8.63. 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 WACC % calculated?
WACC % is calculated from a company's financial statements. For Universal Health Services (UHS), the current WACC % is 6.83% as of Jun. 24, 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:
WACC %: 6.83% (14% below median its 10-year median of 7.97)
GF Value™: $228.22 vs. price of $145.41 (36.3% below fair value)
Industry Position: 20.9% below the Healthcare Providers & Services median (#266 of 695)
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
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