Is The Pennant Group, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for The Pennant Group, Inc. moved from expensive to fair, indicating a more favorable assessment of its current stock price. The company appears fairly valued based on its valuation ratios, including a P/E ratio of 35, an EV to EBITDA of 21.52, and a PEG ratio of 0.70. In comparison to peers, Addus HomeCare Corp. has a lower P/E of 22.05, while Hims & Hers Health, Inc. is considered expensive with a P/E of 54.76, highlighting that The Pennant Group is positioned competitively within its industry.
Despite the recent valuation improvement, The Pennant Group has underperformed relative to the S&P 500, with a year-to-date return of -10.86% compared to the index's 13.30%. Over the past three years, however, it has delivered a strong return of 140.73%, significantly outpacing the S&P 500's 81.19%, suggesting potential for recovery and growth in the longer term.