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. Several key financial ratios suggest that the company may be overpriced relative to its peers in the healthcare sector. The Price-to-Earnings (PE) Ratio of Apollo Medical Holdings stands at 31.42, significantly higher than the sector average of 13.90. A high PE ratio can indicate that a stock is overvalued or that investors are expecting high growth rates. In this case, the elevated ratio raises concerns about sustainability. The Price-to-Book (PB) Ratio for Apollo is 2.49, which is slightly lower than the sector average of 2.64. While this indicates that Apollo's stock isn't excessively overpriced relative to its book value, it does not provide a compelling reason for investment compared to its peers. The Return on Equity (ROE) Ratio for Apollo is 6.05, compared to a troubling sector average of -75.69. Although a positive ROE is favorable, it is modest and reflects limited profitability compared to the potential in the sector. Furthermore, the Return on Assets (ROA) Ratio is 3.18, while the sector average is -48.03. While a positive ROA is a positive indicator, it suggests limited efficiency in utilizing assets compared to competitors. In summary, despite some positive financial metrics, Apollo Medical Holdings' high PE ratio and modest returns indicate potential overvaluation. 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.