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, significantly higher than its peers, such as Universal Health Services, Inc. with a P/E of 9.21 and National HealthCare Corp. at 18.51. Additionally, Chemed's EV to EBITDA ratio stands at 44.10, which is also elevated compared to the industry average.
With a PEG ratio of 6.80, Chemed Corp. appears to be priced excessively relative to its growth prospects. The company's return metrics further reinforce this valuation concern, as it has underperformed the S&P 500 with a year-to-date return of -16.84% compared to the index's 13.30%. Overall, these indicators suggest that Chemed Corp. is overvalued in the current market environment.