OSI Systems Inc (OSIS) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of OSI Systems Inc stock $236, price $196, upside +20.0%, quality 60 out of 100. Rating: undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 9, 2026.
How to read this chart
60‑month range $70.83 – $309.68 · fair‑value band $138.92 – $333.49 · the $196.36 price screens below the $235.67 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 9, 2026.
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OSI Systems, Inc. designs and manufactures electronic systems and components in the United States and internationally. It operates in three segments: Security, Healthcare, and Optoelectronics and Manufacturing.
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The company offers baggage and parcel inspection, cargo and vehicle inspection, hold baggage and people screening, radiation monitoring, explosive and narcotics trace detection systems, and optical inspection systems, and radio frequency (RF) equipment under the Rapiscan name.
It also provides site design, installation, training, and technical support services; and turnkey security screening solutions under the S2 name.
In addition, the company offers patient monitoring, cardiology and remote monitoring, and connected care systems and accessories under the Spacelabs name for use in critical care, emergency, and perioperative areas within hospitals, physicians' offices, medical clinics, and ambulatory surgery centers.
Further, it provides optoelectronic devices and flex circuits under the OSI Optoelectronics, OSI LaserDiode, and Advanced Photonix names for the aerospace and defense, avionics, medical imaging and diagnostics, biochemistry analysis, pharmaceutical, nanotechnology, telecommunications, construction, and homeland security markets.
Additionally, the company offers electronics manufacturing services to original equipment manufacturers and end users for medical, automotive, defense, aerospace, industrial, and consumer applications under the OSI Electronics, APlus Products, Altaflex, and PFC Flexible Circuits names; and LCD displays for medical, industrial, and consumer electronics applications.
The company was incorporated in 1987 and is headquartered in Hawthorne, California.
Stock analysis
OSI Systems Inc (OSIS) currently trades at $196.36, while our model-based Fair Value estimate is $235.67, implying the stock looks roughly 17% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $241.54 per share, and 11 of the 24 models we run sit above the $196.36 price.
Bear case: the Economic Profit group reads lowest at $79.53, and 13 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $138.92 (bear) to $333.49 (bull), the price of $196.36 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 60/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
OSI Systems Inc reported revenue of $1.8B in FY2026 versus $1.2B in FY2022, a compound +10.8%/yr. Reported net income was $155M in FY2026, compounding +7.6%/yr from FY2022.
Key figures
Market cap $3.4B Mid · P/E ratio 21.1 · P/S ratio 1.90 · EPS (TTM) $9.30 · Net margin 8.7% · Return on equity 17.3% · Return on assets (EBIT) 9.1% (5-year average) · Operating margin 14.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 55 out of 100 (low confidence).
What moves the price
The share trades about 37% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −7% fair-value upside, at 20%, OSIS screens cheaper than that median.
Fair Value models
Bear$138.92Fair Value $235.67Bull$333.49
Price $196.36 · Upside +20.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 4 months old). Earnings retained since then ($3.36 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, no officer or director bought or sold shares on the open market.
SaleDeepak ChopraDirector3× since Nov 10, 2025: 60,000 shares, avg. $272.83$16.4MMay 4, 202610b5-1 plan
Plus 43 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.84/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+4.3%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.3%
Start year 2021 (pandemic). Over 10 years: +8.0% a year
Revenue growth 28 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.1%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+17.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.2%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.17.2% vs 21.3%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.10% → 12%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+7.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +4.8% a year for the price and +3.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Bundling cargo inspection equipment with multi-year sustainment services builds more predictable revenue from the installed base, while thin evidence of durable advantage and external constraints on hardware deliveries limit overall quality.
Main risk: External constraints on hardware delivery schedules would disrupt revenue timing and predictability in the cargo inspection contracts.
OSI Systems' cargo inspection contracts now bundle equipment with site engineering and multi-year sustainment services. This mix could build more predictable revenue from the installed base, yet hardware delivery schedules remain exposed to external constraints. Our models see the stock as undervalued. Will recurring service work stabilize results more than one-time shipments, or will project timing still drive swings?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Electronic Components · 653 stocks
Beats the industry median on 10/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score60 · Above median
Fair Value upside+20.0% · Top 25%
Profitability
Return on equity (12 months)17.3% · Top 25%
Return on assets6.2% · Above median
Net margin (12 months)8.7% · Above median
Operating margin (12 months)14.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)−4.1% · Bottom 25%
Balance sheet
Debt / equity1.20× · Highest 25%
Valuation Multiplesvs Electronic Components median · lower = cheaper
P/E (12 months)21.1× · Cheaper than median
P/B4.07× · Priciest 25%
P/S (12 months)1.90× · Cheaper than median
Price / free cash flow (fiscal year)13.8× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "OSI Systems Inc Fair Value". https://www.fairvalue-calculator.com/stock/OSIS
Frequently asked questions
Is OSI Systems Inc (OSIS) overvalued or undervalued?
As of Nov 9, 2026, our model estimates a fair value of $235.67 versus a price of $196.36, about +20% upside (undervalued).
What is the fair value of OSIS?
Our model-based fair value for OSI Systems Inc is $235.67 (as of Nov 9, 2026), built from audited fundamentals. The current price: $196.36.
What is the quality score of OSIS?
OSI Systems Inc has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for OSI Systems Inc (OSIS)?
Our model-based price target is the fair value of $235.67 (as of Nov 9, 2026) from 24 valuation models. Cautious scenario $138.92, optimistic scenario $333.49. It is a calculation from audited fundamentals, not an analyst target.
What is the OSI Systems Inc stock forecast for 2026?
Our models put fair value at $235.67, about +20% upside versus a price of $196.36 (undervalued). Cautious scenario $138.92, optimistic scenario $333.49. The calculation is refreshed regularly with new filings.
What is the revenue of OSI Systems Inc (OSIS)?
OSI Systems Inc reported trailing-twelve-month revenue of about $1.8B (latest available figure, as of Nov 9, 2026).
What growth is priced into OSI Systems Inc (OSIS)?
For today's price to be fair in a discounted-cash-flow model, OSI Systems Inc would have to grow free cash flow by +7.3 % per year for five years (discount rate 10.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +9.3 % per year. As of Nov 9, 2026.
What discount rate (WACC) does the fair value of OSIS use?
Our models discount OSI Systems Inc at 10.3 %: a base by market capitalisation (mid), damped by beta 1.21, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For OSI Systems Inc that is +7.3 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.3 %) and the same formula as our fair value.
How much growth has OSI Systems Inc (OSIS) delivered so far?
Over the past 5 years revenue at OSI Systems Inc grew +9.3 % a year. The price currently implies free-cash-flow growth of +7.3 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of OSI Systems Inc (OSIS) growing?
The median revenue growth in the sector is +11.5 % a year. That is the yardstick for the growth priced into OSI Systems Inc (+7.3 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of OSI Systems Inc (OSIS)?
The free-cash-flow yield on the price is 7.23 %: that much free cash flow OSI Systems Inc produces per unit of market value. When it exceeds the discount rate of our models (10.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of OSI Systems Inc (OSIS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For OSI Systems Inc it is $235.67 per share (as of Nov 9, 2026), against a price of $196.36. It is the blended result of 24 valuation models in 7 families (DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is OSI Systems Inc stock overvalued or undervalued in 2026?
As of Nov 9, 2026, OSIS trades below its calculated fair value: price $196.36, fair value $235.67, a gap of about +20% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of OSIS?
No. The price is what the market pays today ($196.36); the fair value is what the company's own numbers justify ($235.67). For OSI Systems Inc the two are $39.31 per share apart. That gap is exactly why we show both numbers side by side.
How much is OSI Systems Inc worth?
The market values OSI Systems Inc at about $3.4B (market capitalisation, as of Nov 9, 2026). Per share that is $196.36; our models calculate a fair value of $235.67 per share.
What do the bullish and bearish scenarios say about OSIS?
Our models span a range for OSI Systems Inc: cautious scenario $138.92, base $235.67, optimistic $333.49 per share (as of Nov 9, 2026, price $196.36). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of OSIS?
OSI Systems Inc trades at a price-to-earnings ratio of 21.1 (as of Nov 9, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $235.67 is built from several models across several years. Excluding one-off items of fiscal year 2026 it is 19.0 (reported for FY2026: 20.6). Median P/E at fiscal year-end, 9 fiscal years (2017 to 2026), reported earnings, FY2026 ex one-offs: 22.1. Other multiples: PEG 1.5, P/B 4.1, P/S 1.9, EV/EBITDA 15.0.
What is the PEG ratio of OSIS?
The PEG ratio of OSI Systems Inc is 1.47 (P/E divided by earnings growth, as of Nov 9, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of OSI Systems Inc (OSIS)?
Balance-sheet figures for OSI Systems Inc (as of Nov 9, 2026): return on equity 17.3%, debt of 1.20 per unit of equity. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is OSIS from its 52-week high?
OSI Systems Inc trades at $196.36, about 37% below its 52-week high of $309.68 and 2% above the low of $191.61 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $235.67 is for.
Which stocks are comparable to OSI Systems Inc?
From the same area (Technology) we also value Amphenol Corporation, Hon Hai Precision Industry Co, Corning Incorporated, Delta Electronics, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is OSI Systems Inc stock attractive at the current price?
The data as of Nov 9, 2026: price $196.36, calculated fair value $235.67 (+20%), Quality Score 60/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of OSIS calculated?
We run OSI Systems Inc through 24 models from 7 families: DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $235.67 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. OSI Systems Inc currently trades 17% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of OSI Systems Inc (OSIS)?
The closing price on Nov 6, 2026 was $196.36. Our model-based fair value is $235.67, about +20% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with OSI Systems Inc right now?
Solid quality (60/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($138.92 to $333.49) leaves room in how you read the outcome.
Where does the earnings growth of OSI Systems Inc (OSIS) come from?
Earnings per share at OSI Systems Inc grew +18.1 % a year from 2015 to 2026. Broken into its drivers: revenue per share +8.8 %, EBIT margin +8.5 %, tax rate +0.8 %, residual (interest, one-offs) −0.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of OSI Systems Inc
How large is the market capitalisation of OSI Systems Inc (OSIS)?
The market capitalisation of OSI Systems Inc is $3.4B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of OSI Systems Inc (OSIS)?
The price-to-sales ratio of OSI Systems Inc is 1.90 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of OSI Systems Inc (OSIS)?
Earnings per share at OSI Systems Inc are $9.30 (price ÷ EPS = P/E 21.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of OSI Systems Inc (OSIS)?
The net margin of OSI Systems Inc is 8.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of OSI Systems Inc (OSIS)?
The return on equity (ROE) of OSI Systems Inc is 17.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of OSI Systems Inc (OSIS)?
On an EBIT basis the return on assets of OSI Systems Inc is 9.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of OSI Systems Inc (OSIS)?
The operating margin of OSI Systems Inc is 14.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at OSI Systems Inc (OSIS)?
Revenue at OSI Systems Inc is growing −4.1% versus a year earlier (3y avg +11.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at OSI Systems Inc (OSIS)?
Earnings per share at OSI Systems Inc are growing +7.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does OSI Systems Inc (OSIS) carry?
The net debt of OSI Systems Inc is $641M (fiscal year 2026, ≈ 2.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 9, 2026