Is Molina Healthcare, Inc. overvalued or undervalued?

As of 12 August 2025, the valuation grade for Molina Healthcare, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. The P/E ratio stands at 14, while the PEG ratio is a favorable 0.88, suggesting growth potential relative to its earnings. Additionally, the ROE is notably high at 27.29%, indicating effective management of equity.
In comparison to its peers, Molina Healthcare's P/E ratio of 14 is significantly better than Oscar Health, Inc., which has a P/E of -32.68, and Alignment Healthcare, Inc. with a P/E of -66.68, both of which are considered risky investments. Despite the fair valuation, Molina has underperformed against the S&P 500, with a year-to-date return of -38.25% compared to the S&P 500's 12.22%, indicating a challenging market position.