Hims & Hers Health (HIMS): Assessing Valuation Following FDA Green Light and Eased Legal Concerns

If you have been watching Hims & Hers Health (HIMS) lately, the past week has offered some fresh talking points. The FDA recently released its “green list” of GLP-1 suppliers, confirming which overseas ingredient sources meet agency standards. A court ruling also dismissed a lawsuit against another telehealth competitor over compounded weight-loss drugs. Combined, these regulatory green lights come at a time when Hims & Hers is actively broadening its reach by expanding its partnerships with major U.S. health systems and securing a 15-year deal for a large new facility in Ohio. As a result, investors are taking a closer look at what all of this means for the company’s risk profile and growth potential.

Share price momentum has shifted alongside these headlines. While the stock slipped nearly 8% over the past month, it is up 229% from a year ago and nearly 15% just in the last week. That significant jump coincided with the FDA news and legal clarity, fueling optimism that the regulatory fog is clearing. Adding in Hims & Hers’ plan to launch in Canada next year and its recent European platform acquisition, the company appears increasingly committed to expanding its model beyond the domestic market.

With this year’s surge, investors may wonder whether today’s valuation represents an inviting entry point or if the market is already factoring in more optimistic expectations for the future.

Most Popular Narrative: 44.5% Undervalued

According to the most widely followed narrative, Hims & Hers Health is considered significantly undervalued by the market, offering investors a potential upside far above its current trading price.

*"This is a company not trying to compete with traditional healthcare, it’s rewriting the rules. Hims is vertically integrating diagnosis, fulfilment, treatment, and retention under one platform, avoiding insurance entirely, and personalising care at scale. The result? Faster growth, higher margins, and better patient outcomes."*

Could Hims deliver venture-style returns as a public company? The full narrative claims a multi-billion opportunity driven by bold growth forecasts and margin expansion, which is significantly more than the market now expects. What are their core financial assumptions, and what’s behind the optimism? Discover which giant numbers shape this valuation and why some believe this platform is healthcare’s next big disruptor.

Result: Fair Value of $114 (UNDERVALUED)

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

However, regulatory changes or disruptions in pharmaceutical partnerships could challenge this bullish case. This could potentially reverse optimism around Hims & Hers’ long-term platform thesis.

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

Another View: Multiples Tell a Different Story

Looking at how the company is valued compared to others in its industry, the picture shifts. Using this alternative method, Hims appears more expensive than its healthcare peers. Could the market be pricing in too much optimism?

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

Stay updated when valuation signals shift by adding Hims & Hers Health to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Hims & Hers Health Narrative

If these perspectives do not match your own or you want to independently dig into the details, you can craft your own Hims & Hers Health narrative in just a few minutes. Do it your way.

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