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Universal Health Services, Inc. Class B (UHS) — WACC Analysis

WACC Breakdown

Universal Health Services, Inc. Class B (UHS) has a weighted average cost of capital (WACC) of 6.8%. The cost of equity is 8.7%, derived from a beta of 0.74 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.6%. The capital structure is 68.5% equity and 31.5% debt.

Interpretation

A WACC of 6.8% suggests that the market views Universal Health Services, Inc. Class B as relatively low-risk, with a lower cost of financing.

Investors can compare UHS's WACC of 6.8% against industry peers to gauge its relative financing costs. A beta of 0.74 reflects the stock's volatility relative to the broader market.

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VALUATION

UHS WACC: 6.78% for Universal Health Services, Inc. Class B

Current inputs imply a 8.72% cost of equity and a 3.25% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Universal Health Services, Inc. Class B Common Stock (UHS) WACC Results
Weighted Average Cost of Capital
6.78%
Cost of Equity
8.72%
Risk-Free Rate5.22%
Beta0.74
Market Risk Premium4.23%
Cost of Debt
2.57%
Pre-Tax Cost of Debt3.25%
Tax Rate21.00%
Tax Shield0.68%
Capital Structure
Equity: 68.48%($10.54B)
Debt: 31.52%($4851.85M)
Equity Component
5.97%
68.48% × 8.72%
Debt Component
0.81%
31.52% × 2.57%

Universal Health Services, Inc. Class B (UHS) WACC in context

Universal Health Services, Inc. Class B (UHS) currently screens with an estimated WACC of 6.78%. That blends a 8.72% cost of equity, a 3.25% pre-tax cost of debt, and a 68.48% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What UHS WACC implies

A 6.78% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates UHS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.74 and equity accounts for 68.48% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.