HealthEquity, Inc.

NasdaqGS:HQY Stock Report

Market Cap: US$8.3b

HealthEquity Valuation

Is HQY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HQY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HQY ($96.84) is trading below our estimate of fair value ($189.22)

Significantly Below Fair Value: HQY is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HQY?

Key metric: As HQY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HQY. This is calculated by dividing HQY's market cap by their current earnings.
What is HQY's PE Ratio?
PE Ratio86.8x
EarningsUS$96.70m
Market CapUS$8.35b

Price to Earnings Ratio vs Peers

How does HQY's PE Ratio compare to its peers?

The above table shows the PE ratio for HQY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18x
MOH Molina Healthcare
14.5x14.4%US$16.7b
HUM Humana
22.5x11.3%US$30.8b
CNC Centene
9.9x3.4%US$30.6b
PGNY Progyny
25.2x19.6%US$1.4b
HQY HealthEquity
86.8x39.6%US$8.3b

Price-To-Earnings vs Peers: HQY is expensive based on its Price-To-Earnings Ratio (86.8x) compared to the peer average (18x).

Price to Earnings Ratio vs Industry

How does HQY's PE Ratio compare vs other companies in the US Healthcare Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
THC Tenet Healthcare
3.8x-39.2%US$12.17b
NEUE NeueHealth
2.2xn/aUS$60.83m
IDXG Interpace Biosciences
2.7xn/aUS$11.66m
No more companies available in this PE range
HQY 86.8xIndustry Avg. 21.6xNo. of Companies10PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HQY is expensive based on its Price-To-Earnings Ratio (86.8x) compared to the US Healthcare industry average (21.9x).

Price to Earnings Ratio vs Fair Ratio

What is HQY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HQY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio86.8x
Fair PE Ratio49.5x

Price-To-Earnings vs Fair Ratio: HQY is expensive based on its Price-To-Earnings Ratio (86.8x) compared to the estimated Fair Price-To-Earnings Ratio (49.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HQY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$96.84
US$113.00
+16.7%
7.4%US$130.00US$102.00n/a14
Dec ’25US$101.54
US$107.00
+5.4%
8.1%US$130.00US$95.00n/a13
Nov ’25US$86.33
US$103.62
+20.0%
3.9%US$110.00US$95.00n/a13
Oct ’25US$80.27
US$104.07
+29.7%
4.0%US$110.00US$95.00n/a14
Sep ’25US$79.56
US$104.43
+31.3%
5.6%US$115.00US$92.00n/a14
Aug ’25US$77.87
US$104.43
+34.1%
5.6%US$115.00US$92.00n/a14
Jul ’25US$86.62
US$104.43
+20.6%
5.6%US$115.00US$92.00n/a14
Jun ’25US$81.68
US$100.71
+23.3%
5.6%US$110.00US$92.00n/a14
May ’25US$79.75
US$98.81
+23.9%
7.0%US$110.00US$84.20n/a15
Apr ’25US$81.63
US$97.09
+18.9%
7.5%US$110.00US$84.20n/a14
Mar ’25US$81.05
US$93.66
+15.6%
8.7%US$110.00US$79.00n/a14
Feb ’25US$75.62
US$87.73
+16.0%
8.9%US$110.00US$77.00n/a14
Jan ’25US$66.30
US$88.33
+33.2%
9.3%US$110.00US$77.00n/a12
Dec ’24US$69.39
US$85.83
+23.7%
10.1%US$110.00US$73.00US$101.5412
Nov ’24US$68.10
US$86.50
+27.0%
9.2%US$110.00US$77.00US$86.3312
Oct ’24US$73.05
US$84.08
+15.1%
6.9%US$94.00US$72.00US$80.2712
Sep ’24US$66.42
US$81.77
+23.1%
8.1%US$94.00US$71.00US$79.5613
Aug ’24US$67.58
US$81.77
+21.0%
8.1%US$94.00US$71.00US$77.8713
Jul ’24US$63.14
US$81.77
+29.5%
8.1%US$94.00US$71.00US$86.6213
Jun ’24US$55.63
US$81.31
+46.2%
8.2%US$94.00US$69.00US$81.6813
May ’24US$54.02
US$81.31
+50.5%
8.2%US$94.00US$69.00US$79.7513
Apr ’24US$58.71
US$81.31
+38.5%
8.2%US$94.00US$69.00US$81.6313
Mar ’24US$65.39
US$82.23
+25.8%
7.3%US$94.00US$72.00US$81.0513
Feb ’24US$58.99
US$83.15
+41.0%
9.3%US$101.00US$72.00US$75.6213
Jan ’24US$61.64
US$82.43
+33.7%
9.8%US$101.00US$68.00US$66.3014
Dec ’23US$63.27
US$81.36
+28.6%
11.4%US$104.00US$68.00US$69.3914

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 02:21
End of Day Share Price 2024/12/30 00:00
Earnings2024/10/31
Annual Earnings2024/01/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

HealthEquity, Inc. is covered by 23 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Mark MarconBaird
Ishan MajumdarBaptista Research
Alexander ParisBarrington Research Associates, Inc.