$OSCR isn’t cheap because it trades like a mature health insurer. It’s cheap because I don’t think the valuation fully reflects how much earlier Oscar is in its growth curve. Oscar does trade at a premium to some peers on sales and forward earnings. But that makes sense. $UNH, $ELV, $HUM and others are already massive, mature businesses growing much slower. Oscar is still scaling rapidly, expanding margins and only beginning to show what earnings could look like at maturity. And even with that growth advantage, $OSCR trades around 9.6x EV/EBITDA, below several of those larger peers. So in a way, Oscar actually is cheap. You’re paying a relatively modest valuation for a company that could still have years of above-industry growth and margin expansion ahead of it. That’s a setup I really like.
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