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, significantly lower than the industry average, while the EV to EBITDA ratio is 6.69, indicating a potentially unfavorable valuation compared to peers. Additionally, the Price to Book Value is 0.69, suggesting that the stock is trading below its book value.
In comparison to its peers, Acadia's P/E ratio of 8 is notably lower than Encompass Health Corp.'s attractive P/E of 20.94 and The Ensign Group, Inc.'s P/E of 32.46, highlighting a stark contrast in valuation. Furthermore, the company's recent performance has been poor, with a year-to-date return of -50.79% compared to the S&P 500's positive return of 14.40%, reinforcing the notion that Acadia is struggling relative to broader market trends.