Is Astrana Health, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Astrana Health, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 36, which is substantially higher than peers like Premier, Inc. at 11.29 and Select Medical Holdings Corp. at 7.26. Additionally, the EV to EBITDA ratio stands at 14.41, further suggesting that the company's valuation is not justified by its earnings potential.
Comparing Astrana Health's performance to the S&P 500, the stock has shown a year-to-date return of 1.52%, significantly lagging behind the index's 13.30% return, and a one-year return of -47.84% compared to the S&P 500's 14.08%. This underperformance reinforces the notion that Astrana Health, Inc. is overvalued in the current market environment.