Is Premier, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Premier, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on several key metrics, including a P/E ratio of 14, an EV to EBITDA of 13.73, and a Price to Book Value of 1.34. In comparison to peers, Universal Health Services, Inc. has a P/E of 9.20, while National HealthCare Corp. has a P/E of 18.51, highlighting that Premier, Inc. is trading at a premium relative to some competitors.
Despite a strong YTD return of 32.08% compared to the S&P 500's 13.30%, the long-term performance shows a decline of 20.05% over five years, which raises concerns about sustainability. Overall, the combination of high valuation ratios and underperformance in longer time frames suggests that Premier, Inc. is currently overvalued.