A Fresh Look at Hims & Hers Health (HIMS) Valuation After Recent Share Price Volatility

Hims & Hers Health (HIMS) has captured some investor buzz lately as its stock price has moved over the past month. The company’s shares have seen a 30% drop during this period, raising questions about what could be influencing sentiment for the popular telehealth provider.

See our latest analysis for Hims & Hers Health.

While Hims & Hers Health’s share price just took a sharp dive over the past month, the full story is more nuanced. Momentum has cooled off recently, but the big picture remains impressive, with a one-year total shareholder return of 64% and a staggering 471% gain over three years. These figures hint at underlying growth drivers that continue to shape investor sentiment.

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This leaves investors at a crossroads, wondering whether Hims & Hers Health’s recent pullback signals an undervalued opportunity or if the market has already factored in the company’s ambitious growth trajectory.

Most Popular Narrative: 58% Undervalued

According to BlackGoat, the widely followed narrative sees fair value at over three times the current price. This bold outlook is built on Hims & Hers Health's strategy to reinvent healthcare infrastructure at scale, with future-facing ambitions well beyond a traditional telehealth brand.

Hims & Hers Health isn’t a telehealth gimmick or a GLP-1 hype stock; it is quietly becoming the top-of-funnel infrastructure layer for healthcare in the United States. It is executing a strategy similar to Amazon, Spotify, and Costco: deliver more value per dollar spent, reinvest scale advantages, and win via customer-centric efficiency. But unlike those companies, Hims operates in a $4T market that desperately needs reinvention.

Read the complete narrative.

Curious what powers such a lofty valuation? The narrative builds on bold growth projections, margin expansion, and a future profit profile rarely seen outside tech giants. Want to see the exact numbers and strategy that justify this price? Dive into the details of this game-changing forecast.

Result: Fair Value of $114 (UNDERVALUED)

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

However, lingering regulatory uncertainty and heightened competition from big pharma or tech giants could quickly reshape the future trajectory of Hims & Hers Health.

Find out about the key risks to this Hims & Hers Health narrative.

Another View: Market Ratios Raise Eyebrows

Looking at the market’s preferred earnings ratio, Hims & Hers Health trades at a lofty 61x, far above the healthcare industry average of 21.9x and the peer average of 28.4x. Even in comparison to our fair ratio of 46.2x, the company appears expensive. This suggests the market has high expectations already reflected in the price. Could this premium signal risk for new investors, or does it simply reflect outsized growth potential?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Hims & Hers Health Narrative

If you have a different perspective or want to dig deeper into the numbers, you can create your own Hims & Hers Health narrative in just a few minutes. Your view might spotlight something new: Do it your way

A great starting point for your Hims & Hers Health research is our analysis highlighting 3 key rewards and 2 important warning signs 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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