Is AMN Healthcare Services, Inc. overvalued or undervalued?

As of 20 February 2025, the valuation grade for AMN Healthcare Services, Inc. has moved from expensive to risky. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 18, while the industry average P/E is higher at approximately 20.72, indicating that AMN is trading at a discount compared to its peers. Additionally, the EV to EBITDA ratio is 6.85, which is significantly lower than Korn Ferry's 10.49, further supporting the notion of overvaluation.
In terms of key ratios, AMN Healthcare has a Price to Book Value of 1.21 and a ROCE of 5.61%. Compared to peers like Perficient, Inc. with a P/E of 34.11 and Insperity, Inc. at 52.84, AMN's ratios suggest it is not only underperforming but also positioned unfavorably in the market. The company's stock has underperformed significantly, with a one-year return of -60.03% compared to the S&P 500's 10.26%, reinforcing the conclusion that AMN Healthcare Services, Inc. is overvalued.