Is Acadia Healthcare Co., Inc. overvalued or undervalued?

As of 17 October 2025, Acadia Healthcare Co., Inc. has moved from an attractive to a fair valuation grade. The company appears to be undervalued based on its current metrics, with a P/E ratio of 8, a Price to Book Value of 0.69, and an EV to EBITDA of 6.69. In comparison, peers such as Encompass Health Corp. have a significantly higher P/E of 20.94, while The Ensign Group, Inc. shows an even higher P/E of 32.46, indicating that Acadia may be trading at a discount relative to its industry.
Despite its fair valuation grade, Acadia's recent stock performance has been poor, with a year-to-date return of -39.05%, significantly underperforming the S&P 500's gain of 13.30% during the same period. This trend continues over longer time frames, with a 1-year return of -59.26% compared to the S&P 500's 14.08%. Overall, the valuation metrics suggest that Acadia Healthcare is undervalued, but the negative return trends indicate potential underlying issues that investors should consider.