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 ratio of 44.10, all of which are significantly higher than industry averages. In comparison, Universal Health Services, Inc. has a P/E ratio 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.
Recent performance shows that Chemed Corp. has underperformed against the S&P 500, with a year-to-date return of -16.84% compared to the S&P 500's 13.30%. This further reinforces the notion that the stock is overvalued given its high valuation ratios and poor relative performance.