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 financial ratios indicate potential concerns regarding its valuation compared to industry benchmarks. The Price-to-Earnings (PE) ratio for Apollo Medical Holdings stands at 35.81, significantly higher than the sector average of 14.18. A high PE ratio suggests that investors are willing to pay more for each dollar of earnings, but this can also indicate overvaluation if not supported by robust growth prospects. Additionally, the Dividend Yield for Apollo Medical is 0.75%, lower than the sector's 1.18%. This indicates that investors receive a smaller return from dividends relative to their investment compared to other companies in the sector, which may deter income-focused investors. The Return on Equity (ROE) for Apollo Medical is 6.05%, while the sector average is considerably lower at -76.41%. While a positive ROE is generally favorable, it suggests that the company's ability to generate profit from shareholder equity is not as strong as expected, especially when compared to a sector with negative returns. Lastly, the Price-to-Book (PB) ratio for Apollo Medical Holdings is 2.49, which is slightly below the sector average of 2.71. This indicates that the market values the company's assets lower than the average company in the sector, which may reflect skepticism about its future growth potential. In summary, while Apollo Medical shows some positive metrics, its elevated PE ratio, lower dividend yield, and modest ROE compared to the sector raise concerns about its valuation. 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.