PACS Group Inc (PACS) is slightly overvalued and Universal Health Services Inc (UHS) is undervalued.
Against our estimates of intrinsic value, UHS trades at the wider discount: a margin of safety of +62%, against -18% for PACS.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 11.7% (average of 3 methods) values the shares at $35.24; the price of $41.53 is 18% above that value, and 69% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
Discounting its cash flows at 8.5% (average of 3 methods) values the shares at $471.63; the price of $179.29 is 62% below that value, and 78% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | PACS | UHS |
|---|---|---|
| Verdict | Slightly overvalued | Undervalued |
| Price | $41.53 | $179.29 |
| Intrinsic value | $35.24 | $471.63 |
| Margin of safety | -18% | +62% |
| Leak Score | 14/100 (3/12) | 100/100 (3/12) |
| Market cap | $6.6B | $10.6B |
| Revenue growth, 5 years | 45.9% | 8.5% |
| Operating margin | 7.4% | 11.4% |
| Net margin | 4.8% | 8.4% |
| Return on equity | 28.1% | 21.0% |
| Debt to equity | 3.07 | 0.70 |
| P/E | 24.9x | 7.3x |
| Forward P/E | 15.9x | 7.5x |
| P/B | 5.9x | 1.4x |
| Dividend yield | — | 0.5% |