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, indicating a shift in perception regarding its market valuation. The company appears to be overvalued based on its current metrics, with a P/E ratio of 18, which is lower than the peer average of 20.16 for AMN, but significantly higher than peers like Kelly Services, Inc. with a P/E of 5.57. Additionally, the EV to EBITDA ratio stands at 6.85, which is more favorable compared to Kforce, Inc. at 33.55, yet still raises concerns given the overall performance of the stock.
The company's return metrics further highlight its struggles, with a staggering -58.84% return over the past year compared to the S&P 500's 17.14%, and a -66.73% return over the last five years against the S&P's 96.61%. This stark contrast suggests that AMN Healthcare Services, Inc. is not only underperforming relative to the broader market but also indicates potential overvaluation in light of its recent performance and the valuation ratios presented.