Is Select Medical Holdings Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Select Medical Holdings Corp. has 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 8, an EV to EBITDA ratio of 6.47, and a Price to Book Value of 1.15. In comparison, Universal Health Services, Inc. has a P/E of 9.20 and an EV to EBITDA of 6.78, while Chemed Corp. shows a significantly higher P/E of 56.91, reflecting a stark contrast in valuation among peers.
The recent stock performance shows Select Medical Holdings Corp. underperforming relative to the S&P 500, with a year-to-date return of -28.97% compared to the S&P 500's 13.30%. This underperformance, combined with the current valuation metrics, reinforces the conclusion that the stock is overvalued in the current market environment.