Is The Pennant Group, Inc. overvalued or undervalued?

As of 17 October 2025, The Pennant Group, Inc. moved from expensive to fair in its valuation grade. The company is currently fairly valued based on its metrics. Key ratios include a P/E ratio of 35, an EV to EBITDA of 21.52, and a PEG ratio of 0.70, which suggests growth potential relative to its price. In comparison, peers such as Addus HomeCare Corp. have a P/E of 22.05, while Hims & Hers Health, Inc. is considered expensive with a P/E of 54.76.
Despite its fair valuation, The Pennant Group, Inc. has underperformed in recent returns, with a year-to-date decline of 10.86% compared to a 13.30% gain in the S&P 500, and a one-year drop of 32.78% against a 14.08% increase in the index. This performance indicates potential challenges ahead, even as the valuation appears reasonable relative to its peers.