Is BrightSpring Health Services, Inc. overvalued or undervalued?

As of 2 May 2025, the valuation grade for BrightSpring Health Services, Inc. has moved from risky to expensive, indicating a shift towards a more cautious outlook. The company is currently considered overvalued. Key ratios include a P/E ratio of 37, an EV to EBITDA of 12.65, and a PEG ratio of 0.12, which suggests that despite a high valuation, growth expectations may not be fully justified.
In comparison to peers, BrightSpring's P/E ratio of 37 is notably higher than the industry average of approximately 33.23, and its EV to EBITDA ratio of 12.65 also exceeds the peer average of 11.81. This disparity highlights that BrightSpring may be trading at a premium relative to its competitors. Additionally, the company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 33.71% compared to the index's 2.44%, reinforcing the notion that the current valuation may not be sustainable.