1Life Healthcare Not Worth The $18/Share Premium Amazon Is Paying

Nov. 05, 2022 11:40 PM ETAmazon.com, Inc. (AMZN) StockAMZN5 Comments
EBITs And Pieces
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Summary

  • This article seeks to provide a valuation and pricing mechanism for ONEM.
  • We will find a pricing mechanism for ONEM by comparing its financial metrics to the rest of the US market, assess its financial health, and attempt to find a valuation.
  • I give 1Life Healthcare an overall financial health score of 68.96%, and a 42.81% current price attractiveness score relative to the comparison group.
  • 1Life Healthcare has recently been the target of an acquisition by Amazon for $18 per share, but was the acquisition worthwhile?
Amazon Unveils Its First Smartphone

David Ryder/Getty Images News

Hitting headlines back in July, 1Life Healthcare (ONEM) has been a recent acquisition target by Amazon (NASDAQ:AMZN) as the retail giant seeks to “reinvent healthcare” according to AMZN’s own SVP of Amazon Health Services Neil Lindsay.

ONEM is a “...membership-based primary

This article was written by

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Articles for readers seeking easy-to-understand reasoning behind an investment recommendation. We prefer fundamental analysis over technical, and value firms based on performance to the sector, industry and peer group.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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