DCF Tool


Option Care Health Inc. – Pharmacies and Drug Stores
as of august 7, 2019, option care and bioscrip have merged to become one national team, solely dedicated to infusion care. option care health, inc. is the largest independent home and alternate site infusion services provider in the united states. with over 6,000 teammates including 2,900 clinicians, we work compassionately to elevate standards of care for patients with acute and chronic conditions in all 50 states. through our clinical leadership, expertise and national scale, option care health is reimagining the infusion care experience for patients, customers and employees.
Analysis Results
Intrinsic Value $166.54
Latest Price $30.25
Relative Value 82% undervalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 38.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 38.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 0.311 0.299
2024 0.43 0.397
2025 0.595 0.526
2026 0.822 0.698
2027 1.14 0.926
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 34.1 billion. This corresponds to a present value of 26.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.84 billion. Adding in the terminal value gives a total present value of 29.5 billion.

There are presently 177.0 million outstanding shares, so the intrinsic value per share is 166.54.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 994,339,000
Current Cash 294,186,000
Current Liabilities 565,351,000
Current Debt 6,000,000
Non-Cash Working Capital (NCWC) 140,802,000
Change in NCWC 3,664,000
EBIT 245,356,000
Tax Provision 55,212,000
Depreciation and Amortization 65,434,000
Capital Expenditure -35,358,000
Unlevered Free Cash Flow 213,261,684
Current Assets 710,256,000
Current Cash 119,423,000
Current Liabilities 459,695,000
Current Debt 6,000,000
Non-Cash Working Capital (NCWC) 137,138,000
Change in NCWC 4,164,000
EBIT 196,871,000
Tax Provision -23,404,000
Depreciation and Amortization 68,804,000
Capital Expenditure -25,632,000
Unlevered Free Cash Flow 244,207,000
Current Assets 657,012,000
Current Cash 99,265,000
Current Liabilities 434,023,000
Current Debt 9,250,000
Non-Cash Working Capital (NCWC) 132,974,000
Change in NCWC -37,870,000
EBIT 114,068,000
Tax Provision 2,833,000
Depreciation and Amortization 77,896,000
Capital Expenditure -26,875,000
Unlevered Free Cash Flow 127,219,000
Current Assets 558,654,000
Current Cash 67,056,000
Current Liabilities 330,004,000
Current Debt 9,250,000
Non-Cash Working Capital (NCWC) 170,844,000
Change in NCWC -24,343,000
EBIT 2,521,000
Tax Provision -2,274,000
Depreciation and Amortization 57,869,000
Capital Expenditure -28,292,000
Unlevered Free Cash Flow 7,755,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.