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Option Care Health Inc (OPCH) Stock: How Does it Score on Valuation Metrics?

Tuesday, May 31, 2022 01:07 PM | InvestorsObserver Analysts

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Option Care Health Inc (OPCH) Stock: How Does it Score on Valuation Metrics?

InvestorsObserver gives Option Care Health Inc (OPCH) a strong valuation score of 78 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. OPCH currently holds a better value than 78% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 78
OPCH gets a 78 Valuation Rank today. Find out what this means to you and get the rest of the rankings on OPCH!

Metrics Analysis

OPCH has a trailing twelve month Price to Earnings (PE) ratio of 32.2. The historical average of roughly 15 shows a poor value for OPCH stock as investors are paying higher share prices relative to the company's earnings. OPCH's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 0.96 does not justify the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
OPCH has a 12 month forward PE to Growth (PEG) ratio of 1.36. Markets are overvaluing OPCH in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 0.959999978's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

OPCH's valuation metrics are weak at its current price due to a overvalued PEG ratio despite strong growth. OPCH's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on Option Care Health Inc (OPCH) stock.

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