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

As of 21 November 2025, the valuation grade for Acadia Healthcare Co., Inc. moved from expensive to fair. Based on the current metrics, the company appears to be undervalued. The P/E ratio stands at 8, significantly lower than the industry average, while the EV to EBITDA ratio is 6.69, indicating a favorable valuation relative to earnings before interest, taxes, depreciation, and amortization. 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 Healthcare's P/E ratio of 7.69 is notably lower than Encompass Health Corp.'s attractive P/E of 20.94 and The Ensign Group, Inc.'s fair P/E of 32.46, highlighting a potential undervaluation. The company's recent stock performance has been poor, with a year-to-date return of -61.72%, contrasting sharply with the S&P 500's positive return of 12.26% during the same period, which reinforces the notion that Acadia Healthcare may be undervalued in the current market.