Is InfuSystem Holdings, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for InfuSystem Holdings, Inc. moved from expensive to very expensive, indicating a significant deterioration in its valuation appeal. The company is overvalued, as reflected by its P/E ratio of 47, which is notably higher than the peer average of 48.44 for similar companies such as Lincoln Educational Services Corp. and significantly above TaskUs, Inc., which has a much lower P/E of 27.32. Additionally, the EV to EBITDA ratio stands at 8.31, further supporting the overvaluation narrative.
In terms of performance, InfuSystem has shown strong returns year-to-date at 22.60%, outperforming the S&P 500's 16.30%, and a remarkable 67.37% return over the past year compared to the S&P 500's 19.89%. However, the long-term outlook is concerning, with a 5-year return of -15.91% against the S&P 500's 109.18%, suggesting that despite recent gains, the company's valuation remains excessive relative to its performance and peers.