ASTH is now overvalued and could go down -25%

Based on our analysis, Apollo Medical Holdings has received an overvalued rating of 2 out of 5 stars from Cashu. A closer look at its financial ratios reveals several areas of concern when compared to the sector averages. The price-to-earnings (PE) ratio for Apollo Medical stands at 31.35, significantly higher than the sector average of 15.32. A high PE ratio often indicates that a stock is overvalued relative to its earnings, suggesting that investors are paying a premium for each dollar of earnings. This could lead to potential price corrections if the company's earnings do not meet expectations. Additionally, Apollo Medical's price-to-book (PB) ratio is not applicable, which raises questions about the company's valuation relative to its net asset value. Conversely, the sector average PB ratio of 2.72 provides a benchmark that highlights the lack of tangible asset backing in Apollo's valuation. Although Apollo Medical demonstrates a positive net profit margin of 4.38, this is significantly lower than the sector's average of -145.98, indicating that the company is struggling to convert revenue into profit efficiently compared to its peers. The return on equity (ROE) ratio of 9.89, while positive, is also below the sector average of -74.69, suggesting that the company is not generating sufficient returns on shareholder equity compared to others in the industry. Overall, these financial metrics indicate that Apollo Medical Holdings may be overvalued in the current market landscape. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.