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

As of 3 October 2025, the valuation grade for U.S. Physical Therapy, Inc. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 28, a Price to Book Value of 2.70, and an EV to EBITDA of 17.32, which are relatively high compared to its peers. For instance, The Ensign Group, Inc. has a higher P/E of 32.46 but a lower EV to EBITDA of 21.10, while Option Care Health, Inc. shows a more favorable EV to EBITDA of 14.37 with a P/E of 23.61.
In terms of recent performance, U.S. Physical Therapy's stock has returned 10.12% over the past year, which is notably lower than the S&P 500's return of 17.82% during the same period, reinforcing the notion that the stock may be overvalued given its performance relative to the broader market.