Is Privia Health Group, Inc. overvalued or undervalued?

As of 10 September 2025, the valuation grade for Privia Health Group, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued, particularly when considering its P/E ratio of 181, which is substantially higher than peers like Globe Life, Inc. at 11.82 and Primerica, Inc. at 12.59. Additionally, the EV to EBITDA ratio stands at 82.17, further emphasizing the premium at which Privia is trading compared to its industry counterparts.
In terms of returns, Privia Health Group has shown a year-to-date return of 15.63%, which outpaces the S&P 500's 12.22% during the same period; however, its three-year return of -43.32% starkly contrasts with the S&P 500's impressive 70.41% return, highlighting the volatility and potential risks associated with the stock. Overall, the elevated valuation ratios and the mixed performance against the benchmark suggest that investors should approach Privia Health Group with caution.