Is Omnicell, Inc. overvalued or undervalued?

As of 15 August 2025, the valuation grade for Omnicell, Inc. moved from fair to very attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, particularly given its PEG ratio of 0.21, which suggests strong growth potential relative to its price, alongside a P/E ratio of 78 and an EV to EBITDA of 16.81. In comparison, its peer Pegasystems, Inc. has a P/E of 48.13, while AppFolio, Inc. stands at 51.16, highlighting Omnicell's relatively lower valuation metrics.
Despite the attractive valuation, Omnicell has struggled with returns, showing a year-to-date decline of 28.57% compared to a 12.22% gain in the S&P 500, and a staggering 66.62% drop over three years against the benchmark's 70.41% rise. This stark contrast in performance underscores the potential for recovery in the stock, aligning with its current undervaluation status.