Is The Ensign Group, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for The Ensign Group, Inc. has moved from very expensive to attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued, particularly given its P/E ratio of 30, which is higher than the industry average, and a PEG ratio of 0.36, suggesting strong growth potential relative to its price. Additionally, the EV to EBITDA ratio stands at 19.44, which is competitive compared to peers like Encompass Health Corp. with a P/E of 20.94 and EV to EBITDA of 12.89.
In terms of performance, The Ensign Group has outperformed the S&P 500 across multiple periods, with a year-to-date return of 37.02% compared to the S&P 500's 13.30%. This strong performance reinforces the attractiveness of the stock, particularly in light of its solid ROCE of 20.77% and ROE of 16.14%, which further highlight its operational efficiency and profitability compared to its peers.