Is Option Care Health, Inc. overvalued or undervalued?

As of 29 July 2025, the valuation grade for Option Care Health, Inc. has moved from very expensive to fair. This indicates that the company is fairly valued at present. Key valuation ratios include a P/E ratio of 25, an EV to EBIT of 18.67, and an EV to EBITDA of 15.63. In comparison, Encompass Health Corp. has a more attractive P/E ratio of 20.94, while The Ensign Group, Inc. shows a higher P/E of 32.46, suggesting that Option Care Health is positioned competitively within its peer group.
Despite a fair valuation, Option Care Health has experienced mixed returns, with a year-to-date return of 22.46% compared to the S&P 500's 12.22%, but a one-year return of -8.68% versus the S&P 500's 17.14%. This performance indicates that while the stock has shown resilience in the short term, it has struggled over the longer term, reinforcing the notion of its current fair valuation.