A Fresh Look at Hims & Hers Health’s Valuation After Policy Support and Buyback Announcement

Shares of Hims & Hers Health (HIMS) recently climbed after the White House signaled plans to extend Obamacare subsidies, a shift that is expected to secure enrollment and strengthen revenue streams for online healthcare providers.

See our latest analysis for Hims & Hers Health.

The impressive momentum behind Hims & Hers Health is hard to miss, with a 7.2% share price return over the past week helping to recover ground lost during last month's broader pullback. In addition to policy tailwinds, the company’s $250 million share repurchase program and expansion into diagnostic offerings like Labs have fueled bullish sentiment. Looking at the bigger picture, Hims & Hers’ 52% year-to-date share price return and over 520% total return for shareholders in the past three years reinforce that growth optimism remains strong despite periodic volatility.

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With shares rebounding and new initiatives driving headlines, the central question remains: is Hims & Hers Health trading at a discount with room to run, or is the market already pricing in the company’s next phase of growth?

Most Popular Narrative: 55% Undervalued

With the latest close at $38.40 and a widely followed fair value estimate of $86.09, the stage is set for an ambitious upside argument. According to user BlackGoat, the narrative highlights dramatic platform potential, robust growth signals, and a value proposition many see as still early in its lifecycle.

Hims is vertically integrating diagnosis, fulfilment, treatment, and retention under one platform. By avoiding insurance entirely and personalizing care at scale, the company aims for faster growth, higher margins, and better patient outcomes.

Read the complete narrative.

Want to know the growth blueprint behind this high valuation? The key element of this narrative is bold revenue and margin projections that rival the hottest disruptors. Curious which numbers are fueling these ambitious price targets? Only the full narrative reveals what is really driving such a significant upside.

Result: Fair Value of $86.09 (UNDERVALUED)

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

However, regulatory crackdowns or unexpected changes to partnership agreements could quickly challenge the bullish narrative and put pressure on Hims & Hers Health’s growth strategy.

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

Another View: Multiples Show a Higher Bar

While discounted cash flow models point to a notable undervaluation, a look at the price-to-earnings ratio tells a different story. Hims & Hers Health trades at 65.3 times earnings, which is over twice the average for US healthcare peers and a significant premium to its fair ratio of 45.7. This high multiple suggests investors are banking on future performance, raising the stakes if growth slows. Is the market too optimistic, or is this the cost of leadership in a sector ripe for disruption?

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

Build Your Own Hims & Hers Health Narrative

If the above perspectives do not align with your views, or you want to analyze the numbers firsthand, it takes just moments to craft your own perspective. 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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