Is National HealthCare Corp. overvalued or undervalued?

As of 5 August 2025, the valuation grade for National HealthCare Corp. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics. The P/E ratio stands at 16, while the industry average P/E is notably higher at approximately 18.51, indicating that National HealthCare is trading at a discount relative to its peers. Additionally, the EV to EBITDA ratio is 8.72, which is lower than the peer average of 9.12, further supporting the fair valuation stance.
In comparison to its peers, Universal Health Services, Inc. has a P/E of 9.21, while Chemed Corp. is significantly more expensive with a P/E of 56.91. The PEG ratio for National HealthCare is 0.34, suggesting strong growth potential relative to its price. Over the past year, National HealthCare has underperformed the S&P 500, returning -3.46% compared to the index's 17.14%, which may indicate some market skepticism about its future growth prospects.