Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 0.4% dividend yield, Universal Health Services, Inc. has a fair value of $187.54 based on NTM EPS (FY2026) of $23.44. The current PEG ratio is 1.31.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 5.6% |
| Dividend Yield | +0.4% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $23.44 |
| Fair Value | $187.54 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $23.10 | — | — |
| FY2026E | $23.44 | +1.5% | 14 |
| FY2027E | $25.57 | +9.1% | 13 |
| FY2028E | $28.25 | +10.5% | 7 |
| FY2029E | $28.77 | +1.8% | 3 |
4Y Forward EPS CAGR: 5.6%
| Year | Net Income | EPS | YoY |
|---|
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| FY2021 | $991.6M | $11.82 | — |
| FY2022 | $675.6M | $9.14 | -22.7% |
| FY2023 | $717.8M | $10.23 | +11.9% |
| FY2024 | $1.1B | $16.82 | +64.4% |
| FY2025 | $1.5B | $23.10 | +37.3% |
4Y Historical EPS CAGR: 18.2%