Is Aveanna Healthcare Holdings, Inc. overvalued or undervalued?

As of 28 March 2022, the valuation grade for Aveanna Healthcare Holdings, Inc. has moved from does not qualify to risky, indicating increased caution regarding its investment potential. The company is currently assessed as overvalued. Key ratios include a P/E ratio of 25, a negative Price to Book Value of -10.74, and an EV to EBITDA of 11.90.
In comparison to peers, Aveanna's P/E ratio of 21.61 is significantly higher than Pediatrix Medical Group, Inc. at 7.64 and OPKO Health, Inc. with a P/E of -23.64, suggesting that Aveanna is priced at a premium relative to its peers. Additionally, while Aveanna has shown a strong one-year return of 90.23%, this performance contrasts with its recent negative returns over the past month, further reinforcing the notion of overvaluation in the current market context.