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

As of 24 October 2025, the valuation grade for U.S. Physical Therapy, Inc. moved from fair to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 28, a Price to Book Value of 2.70, and an EV to EBITDA of 17.32, which are higher than many peers in the industry. For instance, The Ensign Group, Inc. has a P/E of 32.46, while Option Care Health, Inc. has a more favorable EV to EBITDA of 14.37.
In terms of recent performance, U.S. Physical Therapy has shown a stock return of 13.73% over the past year, which is lower than the S&P 500's return of 16.90% during the same period. This underperformance, combined with its elevated valuation ratios, reinforces the conclusion that the stock is overvalued.