Hims & Hers Health (HIMS): Revisiting Valuation After Growth, Buybacks, Volatility and Shifting Investor Sentiment

Hims & Hers Health (HIMS) has been on a roller coaster, with strong revenue growth, a fresh $250 million buyback plan, and a sharp reaction to being dropped from a key partner list.

See our latest analysis for Hims & Hers Health.

Despite a recent setback and bouts of volatility, Hims & Hers Health’s 30-day share price return of -16.49% sits alongside a much stronger year-to-date share price return of 47.10%. Its three-year total shareholder return of 429.57% points to still solid long-term momentum.

If you are reassessing growth and risk after Hims & Hers Health’s recent swings, it might be worth exploring other digital health names through healthcare stocks for fresh ideas.

With revenue and buybacks pointing one way, and margin pressure plus partner risk pulling the other, is Hims & Hers Health still trading below its true potential, or is the market already baking in its next leg of growth?

Most Popular Narrative: 56.9% Undervalued

According to BlackGoat’s narrative, the fair value for Hims & Hers Health sits far above the recent $37.07 close, framing today’s price as a steep discount to its long term platform ambitions.

Hims is demonstrating rare execution: fast growth, rising profitability, and increasing efficiency all at once. The company is not only expanding its subscriber base but also deepening engagement through personalised care, which boosts retention and monetisation. Despite the complexity of launching new healthcare verticals, Hims is managing to grow without sacrificing margins or operational discipline. It is already cash flow positive, carries no debt, and has the financial strength to keep investing in infrastructure and innovation, without relying on outside capital.

Read the complete narrative.

Want to see how bold growth, rich margins, and a punchy future earnings multiple combine into that triple digit price tag? The narrative breaks down the exact revenue runway, profitability ramp, and valuation lens behind this aggressive target. Curious which assumptions do the heavy lifting, and how sensitive that fair value is if just one of them slips?

Result: Fair Value of $114 (UNDERVALUED)

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

However, heightened regulatory scrutiny around compounding and abrupt shifts in pharma partnerships could slow execution and force a reset of today’s bullish assumptions.

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

Another Lens on Valuation

On earnings, the picture flips. Hims & Hers trades on a rich 63.1x price to earnings ratio, almost triple the US healthcare sector at 22.3x and well above its 42x fair ratio. This raises the risk that even small disappointments could trigger a sharper pullback.

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

Build Your Own Hims & Hers Health Narrative

If the story here feels off, or you would rather test the numbers yourself, you can build a full narrative in minutes, 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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