Is Privia Health Group, Inc. overvalued or undervalued?

As of 13 February 2025, the valuation grade for Privia Health Group, Inc. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios reveal a P/E ratio of 181, a Price to Book Value of 4.29, and an EV to EBITDA of 82.17, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Privia Health Group's P/E ratio of 174.75 significantly exceeds that of Lincoln National Corp., which stands at 4.21, highlighting the disparity in valuation. Additionally, Jackson Financial, Inc. is also categorized as expensive with a P/E of 47.22, but it remains far below Privia's valuation metrics. Notably, while Privia has shown a year-to-date return of 10.54%, it has underperformed relative to the S&P 500's return of 2.44%, further reinforcing the notion that the stock may be overvalued in the current market environment.