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

As of 31 October 2025, Acadia Healthcare Co., Inc. has moved from an expensive to a fair valuation grade. Based on the current metrics, the company appears undervalued, 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 more attractive valuation relative to its industry counterparts.
Despite the fair valuation, Acadia's stock has underperformed significantly against the S&P 500, with a year-to-date return of -45.78% compared to the index's 16.30%. This stark contrast in performance reinforces the notion that Acadia may be undervalued in the current market environment.