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

As of 31 October 2025, the valuation grade for Acadia Healthcare Co., Inc. moved from expensive to fair. The company appears to be undervalued based on its current metrics. Key ratios include a P/E ratio of 8, a Price to Book Value of 0.69, and an EV to EBITDA of 6.69, all of which suggest that the stock is trading at a discount compared to its earnings and asset value.
In comparison to peers, Acadia's P/E ratio of 8 is significantly lower than Encompass Health Corp.'s attractive P/E of 20.94 and The Ensign Group, Inc.'s attractive P/E of 32.46, indicating that Acadia may be undervalued relative to these industry leaders. Additionally, Acadia's EV to EBITDA of 6.69 is more favorable than DaVita, Inc.'s risky EV to EBITDA of 7.56. Despite these favorable valuation metrics, Acadia has underperformed the S&P 500 significantly over multiple periods, with a year-to-date return of -45.78% compared to the S&P 500's 16.30%.