Is Pediatrix Medical Group, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Pediatrix Medical Group, Inc. moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company appears undervalued, supported by a P/E ratio of 8, a PEG ratio of 0.19, and an EV to EBITDA ratio of 7.17, all of which are favorable compared to its peers. For instance, Hims & Hers Health, Inc. has a much higher P/E ratio of 54.76, while Addus HomeCare Corp. stands at a fair valuation with a P/E of 22.05.
Despite a recent decline in the short term, Pediatrix Medical Group has outperformed the S&P 500 with a year-to-date return of 26.45% compared to the index's 12.22%. However, over the longer term, the company has struggled, with a 3-year return of -5.63% versus the S&P 500's 70.41%. Overall, the current valuation metrics suggest that Pediatrix Medical Group, Inc. is an attractive investment opportunity within the pharmaceuticals and biotechnology sector.