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

As of 7 November 2025, Acadia Healthcare Co., Inc. has moved from a very expensive to an expensive valuation grade. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 8, which is significantly lower than the peer average, while the EV to EBITDA ratio is 6.69, indicating a potential undervaluation compared to industry standards.
In comparison to its peers, Acadia's P/E ratio is notably lower than Encompass Health Corp. at 20.94 and The Ensign Group, Inc. at 32.46, both of which are considered attractive. Additionally, Acadia's EV to EBITDA ratio of 6.69 is also lower than DaVita, Inc.'s 7.56, which is classified as risky. The stock has underperformed significantly against the S&P 500, with a year-to-date return of -50.79% compared to the S&P 500's 14.40%, reinforcing the notion that the stock is overvalued in its current state.