Is Premier, Inc. overvalued or undervalued?

As of 24 April 2025, the valuation grade for Premier, Inc. has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a P/E ratio of 14, an EV to EBITDA of 13.73, and a PEG ratio of 0.19, which suggests that despite a low P/E, the overall valuation metrics indicate a premium price relative to earnings growth potential.
In comparison to peers, Surgery Partners, Inc. has a much higher P/E of 34.02, while Select Medical Holdings Corp. shows a lower P/E of 7.26, highlighting the disparity in valuation within the sector. Additionally, Premier's recent stock performance has lagged behind the S&P 500, with a 1-month return of -5.07% compared to the S&P 500's 3.83%, reinforcing the notion that the stock may be overvalued in the current market environment.