Is U.S. Physical Therapy, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for U.S. Physical Therapy, Inc. has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a P/E ratio of 28, an EV to EBITDA of 17.32, and a Price to Book Value of 2.70, which are significantly higher than many peers in the industry.
In comparison, Amedisys, Inc. has a P/E ratio of 20.53 and an EV to EBITDA of 15.59, suggesting that U.S. Physical Therapy is trading at a premium relative to its peers. Additionally, Guardant Health, Inc. and RadNet, Inc. present a stark contrast with their negative P/E ratios, highlighting the risk associated with their valuations. The company's recent performance has lagged behind the S&P 500, with a year-to-date return of -14.73% compared to the index's 2.44%, further reinforcing the notion of overvaluation.