Is InfuSystem Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for InfuSystem Holdings, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears overvalued, particularly with a P/E ratio of 47, which is notably high compared to its peers. Additionally, the EV to EBITDA ratio stands at 8.31 and the PEG ratio is an extremely low 0.01, suggesting that the stock may not be justified at its current price given its earnings growth prospects.
When compared to peers, InfuSystem's P/E ratio of 48.44 is higher than Lincoln Educational Services Corp. at 59.63 and TaskUs, Inc. at 27.32, indicating that it is trading at a premium despite its lower returns on equity (ROE of 5.78%) and return on capital employed (ROCE of 10.14%). Over the past year, InfuSystem has outperformed the S&P 500 with a return of 28.57% compared to the index's 14.08%, but its longer-term performance shows a decline of 31.19% over five and ten years, which raises concerns about its sustainability at current valuation levels.