Aveanna Healthcare Holdings' Share Price Surge: Undervalued or Priced in Future Growth?

Aveanna Healthcare Holdings (AVAH) shares have surged 130% in the past three months, driven by increasing demand for home-based healthcare and growing patient preference for in-home care. Analysts estimate the company's fair value at $9.22, signaling high conviction in their numbers. However, persistent wage inflation or regulatory changes to Medicaid reimbursements could challenge Aveanna's growth trajectory. The stock's price-to-earnings ratio stands at 102.7x, much higher than the US Healthcare industry average of 21.8x and its peer average of 28.8x.