Is Chemed Corp. overvalued or undervalued?

As of 29 July 2025, Chemed Corp. has moved from an expensive to a very expensive valuation grade. The company is overvalued, as indicated by its high P/E ratio of 65, a Price to Book Value of 16.99, and an EV to EBITDA ratio of 44.10. In comparison, Universal Health Services, Inc. has a P/E of 9.20 and an EV to EBITDA of 6.78, while National HealthCare Corp. shows a fair valuation with a P/E of 18.51 and an EV to EBITDA of 9.12, highlighting the significant premium Chemed Corp. commands over its peers.
The stock has underperformed relative to the S&P 500, with a year-to-date return of -13.51% compared to the index's 12.22%, and a one-year return of -20.67% against the S&P 500's 17.14%. This underperformance further reinforces the notion that Chemed Corp. is overvalued in the current market environment.