Universal Health Services Model Update

Research evidence excerpt

Universal Health Services Model Update

Benjamin Rossi AC North America Equity Research

(1-212) 622-9603 20 May 2026 J P M O R G A N

benjamin.rossi@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

UHS owns and operates 29 acute care hospitals, 168 outpatient

facilities, and 346 inpatient behavioral healthcare facilities in

the U.S., U.K., and Puerto Rico. We generally like UHS’ acute

care geographic footprint given exposure to markets with

favorable demographic and employment trends as well as strong

local market share. We also like the Behavioral segment, which

comprises ~42% of revenue and generates 20%+ EBITDA

margins vs mid-teens for the acute business. While we believe

there will be solid long-term demand for behavioral health

YTD 1m 3m 12m services and note that while the rate environment has been more

Abs -23.6% -8.8% -27.6% -15.4% favorable than historical levels, forward policy risks as

Rel -34.3% -7.7% -30.7% -46.0%

OBBBA-related policies take effect and broader headline risk as

Company Data well as reliance on Medicaid supplemental payments as part of

Shares O/S (mn) 62 the Acute growth story leaves us on the sidelines.

52-week range ($) 246.32-152.33

Market cap ($ mn) 10,264.64 Valuation

Exchange rate 1.00 Incorporating UHS’ current market position, operating metrics,

Free float (%) 94.0%

3M ADV (mn) 0.83 growth outlook, segment diversity, and historical valuation

3M ADV ($ mn) 155.2 multiples, we derive a December 2026 price target of $205,

Volatility (90 Day) 39 which pegs an EV/EBITDA multiple of ~6.1x on our 2027 adj

Index RUSSELL 2000

BBG ANR (Buy | Hold | Sell) 8|11|1 EBITDA estimate. Our target multiple is slightly below UHS’

historical avg, which we believe is warranted based on the

Key Metrics (FYE Dec)