Is Healthcare Services Group, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Healthcare Services Group, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company is considered overvalued based on its P/E ratio of 25, which is significantly higher than peers like OPENLANE, Inc. at 23.96 and PagSeguro Digital Ltd. at 8.20. Additionally, the EV to EBITDA ratio stands at 13.84, again higher than OPENLANE's 11.43, suggesting that the company is trading at a premium compared to its peers.
While Healthcare Services Group, Inc. has shown strong recent performance, with a year-to-date return of 40.77% compared to the S&P 500's 13.30%, its long-term outlook appears less favorable, as indicated by a 5-year return of -31.36% versus the S&P 500's 91.29%. This divergence in performance underscores the potential risks associated with its current valuation.