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

As of 31 October 2025, Acadia Healthcare Co., Inc. moved from expensive to fair in its valuation grade. The company is currently fairly valued, 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, Encompass Health Corp. has a significantly higher P/E ratio of 20.94, indicating a more attractive valuation, while DaVita, Inc. has a P/E ratio of 9.71, which is closer to Acadia's valuation.
Despite its fair valuation, Acadia's stock has underperformed relative to the S&P 500, with a year-to-date return of -47.89% compared to the index's positive return of 16.30%. This trend continues over multiple periods, suggesting that while the company's valuation metrics are reasonable, its stock performance has been disappointing.