Life Time (LTH): Assessing Valuation After Recent Share Price Pullback

Life Time Group Holdings (LTH) has shown some interesting moves lately, especially as investors look closely at its performance over the past month. Shares have seen a dip, with the stock price pulling back 11% during this period. Many are curious whether the recent trend could be an opportunity or a sign of challenges ahead.

See our latest analysis for Life Time Group Holdings.

Zooming out, Life Time’s share price has climbed 13.4% in 2024, but recent momentum is fading with hefty losses in the past month. While the one-year total shareholder return is barely higher at 0.47%, investors with a longer view have seen an impressive 165% total return over three years. This suggests that the market’s appetite for growth remains part of the story, despite recent volatility.

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The question now is whether Life Time’s recent pullback makes it an undervalued pick, or if the market has already factored in its future growth prospects. Is there a real buying opportunity, or is everything priced in?

Most Popular Narrative: 35.1% Undervalued

With Life Time Group Holdings closing at $25.39, the most-followed narrative assigns a much higher fair value. This suggests that the current market price trails growth expectations and highlights key drivers shaping the company’s long-term trajectory.

The expanding pipeline of new and larger club openings in affluent and high-density markets positions Life Time for sustained membership and top-line revenue growth, benefiting from the growing consumer demand for premium health, wellness, and lifestyle experiences. Accelerating growth in ancillary, higher-margin services, including personal training, Life Time Digital offerings, nutritional supplements, and health and wellness programs, supports increased average revenue per member and improved net margins as consumer expectations shift toward holistic wellness.

Read the complete narrative.

Want to know the secret behind this bullish price target? It is grounded in aggressive expansion, rising margins, and a forward-looking approach that could outpace the market. The narrative’s numbers reveal assumptions that might surprise even the most optimistic investors. Find out what is really fueling this value.

Result: Fair Value of $39.10 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained premium pricing might limit growth during downturns, and rising construction costs could tighten margins, which may challenge Life Time’s bullish outlook.

Find out about the key risks to this Life Time Group Holdings narrative.

Build Your Own Life Time Group Holdings Narrative

If you feel inspired to dig deeper or want to build your own case from the numbers, you can craft a personalized narrative in just a couple of minutes. Do it your way.

A great starting point for your Life Time Group Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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