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 to peers, Acadia's P/E ratio is significantly lower than Encompass Health Corp. at 20.94 and The Ensign Group, Inc. at 32.46, indicating a potential undervaluation relative to its industry.
Despite the fair valuation grade, Acadia's recent stock performance has been poor, with a year-to-date return of -39.05% compared to the S&P 500's 13.30%, and a staggering -70.67% over three years while the S&P 500 gained 81.19%. This stark contrast in returns suggests that while the stock may be undervalued, market sentiment has been unfavorable, impacting its price significantly.