Is Oscar Health, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Oscar Health, Inc. has moved from fair to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued, particularly when considering its high P/E ratio of 32 and an EV to EBITDA ratio of 40.04, which are significantly above industry norms, as evidenced by peers such as Molina Healthcare, Inc. with a P/E of 8.42 and an EV to EBITDA of 20.30.
In addition, Oscar Health's PEG ratio of 0.10 suggests that its growth prospects may not justify its current valuation. The company has also underperformed compared to the S&P 500 over the past year, with a stock return of -15.44% versus the index's 17.14%, although it has shown impressive growth over the past three years with a return of 232.93% compared to the S&P 500's 70.41%. This mixed performance further reinforces the notion that Oscar Health is currently overvalued in the market.