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. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 25, while the EV to EBITDA ratio is significantly higher at 13.84, indicating a premium valuation compared to its earnings potential. Additionally, the Price to Book Value is 2.09, suggesting that the stock is trading at more than double its book value.
In comparison to its peers, Healthcare Services Group, Inc. has a notably high P/E ratio of 96.99, while OPENLANE, Inc. has a fair P/E of 23.96, and PagSeguro Digital Ltd. boasts an attractive P/E of just 8.20. This disparity highlights the overvaluation of Healthcare Services Group relative to its industry peers. Furthermore, while the company has performed well in the short term with a year-to-date return of 54.71% compared to the S&P 500's 12.26%, its long-term performance is concerning, with a 5-year return of -21.25% versus the S&P 500's 85.61%.