Is Option Care Health, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Option Care Health, Inc. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears fairly valued based on its current metrics. The P/E ratio stands at 25, while the EV to EBITDA ratio is 15.63, and the Price to Book Value is 3.88, suggesting that the stock is reasonably priced relative to its earnings and book value.
In comparison to its peers, Encompass Health Corp. has a more attractive P/E ratio of 20.94, while The Ensign Group, Inc. shows a higher P/E at 32.46, reflecting different market expectations. Notably, Option Care Health's recent stock performance has outpaced the S&P 500 with a 1-week return of 3.97% compared to the index's 1.70%, reinforcing the notion that the stock is positioned well within its sector despite some volatility in longer-term returns.