<div id="readability-page-1"><div><p>Aveanna Healthcare Holdings (AVAH) shares drew attention following the company’s third quarter update, which showcased sharp revenue and EBITDA growth. The company also reported a move back into profitability. Management raised full-year revenue guidance in light of these results.</p> <p>See our latest analysis for Aveanna Healthcare Holdings.</p> <p>Following its upbeat earnings, Aveanna's momentum has clearly accelerated. Despite a slight pullback this week, the stock’s year-to-date share price return of 94% stands out, while its three-year total shareholder return of 810% puts longer-term gains firmly in the spotlight. Recent strategic moves such as acquisitions, debt refinancing, and guidance raises have played a key role in building investor confidence around future growth and operational stability.</p> <p>If Aveanna’s surge has you watching for the next healthcare winner, discover other industry standouts with our latest See the full list for free.</p> <p>Yet with Aveanna’s remarkable share price rally and upgraded guidance, investors are left wondering if the current valuation is a bargain given its growth trajectory, or if the market has already priced in all the upside.</p> <h2>Most Popular Narrative: 9% Undervalued</h2> <p>The most popular narrative indicates that Aveanna Healthcare Holdings’ fair value is $9.61, slightly above its last close of $8.75. This sets the stage for a deeper look into what may be fueling optimistic analyst projections.</p> <blockquote> <p><em>Successful execution of the preferred payer strategy, including a rapid increase in preferred payer agreements in all segments and legislative progress on rate enhancements, supports higher reimbursement rates, better operating leverage, and improved net margins into 2025 and beyond.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Want to discover what powers this bold valuation? The most closely watched assumption is a multi-year boost to profits and margins, hinging on strategic changes and a big demographic trend. What does this blueprint look like for the next three years? Only the full narrative reveals how these expectations translate to future cash flow and valuation.</p> <p><strong>Result: Fair Value of $9.61 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, persistent wage inflation or regulatory pressures on Medicare and Medicaid could still threaten Aveanna’s margin expansion and long-term growth outlook.</p> <p>Find out about the key risks to this Aveanna Healthcare Holdings narrative.</p> <h2>Another View: What Does the Market Multiple Suggest?</h2> <p>Looking from a different angle, Aveanna trades at a price-to-earnings ratio of 24.2x, which is a premium over the US Healthcare industry average of 21.5x but remains far below the peer average of 81.6x. Interestingly, the fair ratio for the stock is estimated at 33.5x, a level markets could shift toward if optimism holds. This presents investors with a mix of valuation risk and opportunity, raising the question: will Aveanna’s earnings growth justify a move closer to that fair ratio?</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/bc590ca0-25cc-402c-81a6-671b1cea62d8/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/bc590ca0-25cc-402c-81a6-671b1cea62d8/chart/pe-multiple-vs-industry"/><figcaption>NasdaqGS:AVAH PE Ratio as at Nov 2025</figcaption></figure><h2> Build Your Own Aveanna Healthcare Holdings Narrative</h2> <p>If you see the story differently, or want to put your own perspective to the test, you can build a personalized narrative from the same data set in under three minutes, and Do it your way</p> <p>A great starting point for your Aveanna Healthcare Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.</p> <h2>Looking for more investment ideas?</h2> <p>Smart investors know opportunities do not wait. Use the Simply Wall Street Screener to pinpoint stocks with standout qualities that could power your portfolio higher.</p> <ul> <li>Unlock profit potential by targeting these 881 undervalued stocks based on cash flows, which the market may be overlooking based on their strong cash flows and fundamentals.</li> <li>Boost your passive income strategy with these 16 dividend stocks with yields &gt; 3% that offer reliable yields above 3 percent and robust financial health.</li> <li>Get ahead of tomorrow’s tech trends by tracking these 25 AI penny stocks, companies innovating at the cutting edge of artificial intelligence and automation.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

AVAH

<p>Aveanna Healthcare Holdings (AVAH) reported strong Q3 results, showcasing significant revenue and EBITDA growth, and returning to profitability. The company raised its full-year revenue guidance, leading to a year-to-date share price return of 94%. Analysts suggest the fair value is $9.61, indicating the stock is undervalued at its last close of $8.75. Aveanna trades at a P/E ratio of 24.2x, above the industry average, but below peers. Key risks include wage inflation and regulatory pressures on Medicare and Medicaid, which could impact future growth.</p>

Aveanna Healthcare Holdings (AVAH): Assessing Valuation Following Strong Q3 Results and Raised Guidance