Is Option Care Health, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Option Care Health, Inc. has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a P/E ratio of 25, an EV to EBIT of 18.67, and a Price to Book Value of 3.88, which are notably higher than many of its peers.
In comparison, Encompass Health Corp. has a P/E ratio of 20.99 and an EV to EBITDA of 12.80, while DaVita, Inc. shows a much lower P/E of 10.06 and an EV to EBITDA of 7.79. This suggests that Option Care Health, Inc. is trading at a premium relative to its industry peers. Additionally, while the stock has shown a solid year-to-date return of 33.84%, it has underperformed compared to the S&P 500's return of 2.44% in the same period, reinforcing the notion of overvaluation.