OPCH
Option Care Health, Inc.
$21.82
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 14.4% below fair value
You pay
$21.82
Bear
$20.40
Fair
$25.49
Bull
$30.59
Bear
$20.40
-6.5%
$1.28 × 15x P/E
Fair
$25.49
+16.9%
$1.28 × 19x P/E
Bull
$30.59
+40.2%
$1.28 × 23x P/E
Key Value Driver
Normalized P/E multiple (19x base case)
Implied Market Multiple
17.0x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $30.50 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $25.49 per share.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples