Is Pediatrix Medical Group, Inc. overvalued or undervalued?

As of 20 February 2024, the valuation grade for Pediatrix Medical Group, Inc. has moved from very expensive to risky. The company appears to be undervalued based on its current metrics, with a P/E ratio of 8, significantly lower than the industry average. Additionally, the EV to EBITDA ratio stands at 7.17, and the PEG ratio is notably low at 0.19, indicating potential for growth relative to its price.
In comparison to peers, Pediatrix Medical Group's P/E ratio of 7.64 is much lower than Addus HomeCare Corp.'s P/E of 22.93, which is classified as very expensive, while OPKO Health, Inc. is also in the risky category but with a negative P/E. The company's ROCE of 16.57% and ROE of 19.10% further support the notion that it is undervalued, as these returns are relatively strong. Overall, the valuation metrics suggest that Pediatrix Medical Group, Inc. is undervalued in the current market context.