Is HCA Healthcare, Inc. overvalued or undervalued?

As of 20 July 2021, the valuation grade for HCA Healthcare, Inc. has moved from attractive to risky, indicating a shift in its investment appeal. The company appears to be overvalued, as evidenced by its P/E ratio of 14, which is higher than the peer average of approximately 14.21, and a significantly negative Price to Book Value of -26.28. Additionally, the EV to EBITDA ratio stands at 9.56, which is also above the industry average, suggesting that the company may not be a favorable investment at its current price.
In terms of peer comparison, HCA Healthcare's PEG ratio of 1.15 is lower than the peer average of 1.48, indicating that it may be undervalued in terms of growth expectations relative to its price. However, the overall financial metrics point to a concerning valuation. Notably, HCA's stock has returned 33.62% year-to-date, significantly outperforming the S&P 500's 12.22% return, but this strong performance may not be sustainable given the current valuation risks.