Is Chemed Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Chemed Corp. has moved from fair to very expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 65, a Price to Book Value of 16.99, and an EV to EBITDA of 44.10, all of which suggest a premium valuation compared to its peers. Notably, Universal Health Services, Inc. has a P/E of 9.20 and an EV to EBITDA of 6.78, highlighting the stark contrast in valuation metrics within the industry.
Chemed Corp.'s recent performance shows a significant decline, with a year-to-date return of -16.84% compared to the S&P 500's gain of 13.30%, and a 1-year return of -28.08% against the index's 14.08% increase. These figures reinforce the notion that Chemed Corp. is overvalued in the current market environment.