Is Acadia Healthcare (ACHC) Undervalued After Its Steep Year-to-Date Share Price Slide?

Acadia Healthcare Company (ACHC) has been sliding hard this year, with the stock now down roughly 60% year to date, so investors are naturally asking whether the market has overcorrected.

See our latest analysis for Acadia Healthcare Company.

That drop has come as investors reassess execution risks and margins, so despite steady topline growth the 30 day share price return of minus 22.62 percent and five year total shareholder return of minus 64.29 percent show momentum clearly fading.

If this drawdown has you rethinking your healthcare exposure, it could be a smart moment to explore other opportunities across healthcare stocks that may offer stronger trends and cleaner narratives.

With shares trading at a steep discount to analyst targets despite solid revenue and earnings growth, the key question now is simple: is Acadia genuinely undervalued or are markets correctly pricing in all of its future growth?

Most Popular Narrative Narrative: 34.9% Undervalued

With Acadia Healthcare shares last closing at $16.49 against a narrative fair value of $25.32, the valuation gap centers on future earnings power and margins.

Accelerated facility development, opening beds ahead of schedule, joint ventures with large healthcare systems, and ongoing expansion in high-demand lines (comprehensive treatment centers, specialty care) are expected to fuel multiyear top-line growth and operational leverage, positively impacting revenue and earnings as new facilities ramp up.

Read the complete narrative.

Want to see how steady, mid single digit revenue growth, rising margins, and a lower future earnings multiple can still justify a higher price? The full narrative unpacks the exact profit trajectory and valuation framework behind that fair value, and the assumptions might surprise you.

Result: Fair Value of $25.32 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer Medicaid volumes and ongoing legal investigations could pressure margins and sentiment, potentially derailing the upbeat growth and valuation case.

Find out about the key risks to this Acadia Healthcare Company narrative.

Build Your Own Acadia Healthcare Company Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in a few minutes: Do it your way.

A great starting point for your Acadia Healthcare Company research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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