Is Amedisys, Inc. overvalued or undervalued?

As of 14 August 2025, the valuation grade for Amedisys, Inc. has moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company appears overvalued, with a P/E ratio of 20, compared to a peer average P/E of approximately 17.89, and an EV to EBITDA ratio of 15.03, which is higher than the industry average. Additionally, the PEG ratio stands at a notably low 0.30, suggesting that the stock may not be justified at its current price given its growth prospects.
In comparison to its peers, Encompass Health Corp. has a P/E of 20.94 and The Ensign Group, Inc. shows a much higher P/E of 32.46, both indicating that Amedisys is trading at a premium relative to these companies. Furthermore, Amedisys's recent stock performance has lagged behind the S&P 500, with a 1-year return of 2.58% compared to the index's 17.14%, and a staggering 5-year return of -56.15% versus the S&P's 96.61%. This underperformance reinforces the view that Amedisys is overvalued in the current market environment.