Is Premier, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Premier, Inc. moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 14, an EV to EBITDA ratio of 13.73, and a Price to Book Value of 1.34. In comparison, Universal Health Services, Inc. has a P/E of 9.20 and an EV to EBITDA of 6.78, while National HealthCare Corp. shows a fair valuation with a P/E of 18.51.
Despite a strong year-to-date return of 32.08% compared to the S&P 500's 13.30%, the long-term performance reveals a concerning trend, with a 3-year return of -17.89% versus the S&P 500's 81.19%. This discrepancy further supports the conclusion that Premier, Inc. is currently overvalued.