Is Healthcare Services Group, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Healthcare Services Group, Inc. moved from very expensive to expensive, indicating a shift towards a less favorable valuation. The company appears to be overvalued, with a P/E ratio of 25, 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, which is also elevated compared to the industry context.
In terms of performance, Healthcare Services Group, Inc. has shown strong returns, with a year-to-date return of 54.71% compared to the S&P 500's 12.26%, and a one-year return of 55.99% against the S&P 500's 11.00%. However, the longer-term perspective reveals a concerning trend, as the three-year return of 28.27% lags behind the S&P 500's 67.17%, and the five-year return of -21.25% is significantly underperforming the index's 85.61%.