Is Omnicell, Inc. overvalued or undervalued?

As of 23 May 2025, the valuation grade for Omnicell, Inc. has moved from very attractive to fair. The company is currently considered overvalued based on its high P/E ratio of 78, significantly above the industry average P/E of approximately 71.64. Additionally, the EV to EBIT ratio stands at 135.19, indicating a premium valuation compared to its peers, while the EV to EBITDA ratio is 16.81, which is also on the higher side.
In comparison to peers, Omnicell's PEG ratio of 0.21 suggests it may have growth potential, but its low ROCE of 1.05% and ROE of 1.79% raise concerns about its profitability and efficiency. Notably, the stock has underperformed against the S&P 500 over various time frames, including a year-to-date return of -36.28% compared to the S&P 500's 2.44%. This performance further supports the conclusion that Omnicell, Inc. is overvalued in its current market position.