Is Chemed Corp. overvalued or undervalued?

As of 10 June 2025, the valuation grade for Chemed Corp. has moved from very expensive to expensive, indicating a slight improvement in its valuation perception. Based on the analysis, the company is currently overvalued. The P/E ratio stands at 65, significantly higher than the industry average, while the EV to EBITDA ratio is at 44.10, suggesting a premium valuation compared to its peers. The PEG ratio is also elevated at 6.80, further reinforcing the overvaluation stance.
In comparison to its peers, Chemed Corp. has a P/E ratio of 63.54, while Tenet Healthcare Corp. and Universal Health Services, Inc. have P/E ratios of 9.59 and 8.86, respectively. This stark contrast highlights Chemed's expensive valuation relative to its competitors. Additionally, the company's recent stock performance shows a YTD return of 4.11%, which lags behind the S&P 500's return of 2.44%, suggesting that despite its high valuation, the stock has not outperformed the broader market.