Is The Ensign Group, Inc. overvalued or undervalued?

As of 29 July 2025, the valuation grade for The Ensign Group, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued based on its current metrics, with a P/E ratio of 30, a PEG ratio of 0.36, and an EV to EBITDA ratio of 19.44. In comparison, Encompass Health Corp. has a lower P/E of 20.94 and a PEG ratio of 0.68, while Option Care Health, Inc. shows an EV to EBITDA of 14.37, further supporting the attractiveness of The Ensign Group's valuation.
Despite a recent dip in stock performance over the past week, where it returned -1.11% compared to the S&P 500's 1.05%, the year-to-date return of 25.75% significantly outpaces the S&P 500's 12.22%. This strong performance over a longer horizon, particularly a 200.43% return over the past five years, reinforces the notion that The Ensign Group is positioned favorably within its industry.