Hims & Hers Health (HIMS) Valuation in Focus After Q3 Growth, Profit Pressure, and Strategic Shifts

Hims & Hers Health reported third quarter results that showed robust sales momentum but softer profitability compared to last year. In addition to earnings, the company provided revised guidance and shared updates on its strategy in newer treatment areas.

See our latest analysis for Hims & Hers Health.

Despite a pullback in the last month, Hims & Hers Health’s shares are still up a remarkable 76% so far this year, with a 1-year total shareholder return of nearly 114% and an extraordinary 861% gain over the past three years. After a flurry of announcements, ranging from expanding GLP-1 treatments and international ventures to a high-profile investment from JPMorgan and recent regulatory challenges, investors are clearly recalibrating both the risks and the ongoing growth story. The recent cooling in share price momentum comes after a period of exceptional long-term returns, reflecting a market that is digesting new developments and reassessing the company’s future trajectory.

If the rapid evolution in digital healthcare has your attention, it’s a great moment to see what other innovators are doing—discover See the full list for free.

With shares pausing after spectacular multi-year gains but investor sentiment mixed, the big question is whether Hims & Hers Health presents a true value at today’s price or if the market has already accounted for its next chapter of growth.

Most Popular Narrative: 48% Undervalued

Hims & Hers Health’s most widely followed narrative puts its fair value at $86.09, almost double the last closing price of $44.39. This valuation stands out, especially given the backdrop of recent volatility and ongoing regulatory scrutiny.

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.

Read the complete narrative.

Want to know what bold assumptions power this massive gap? The narrative expects rapid revenue and profit expansion, levels usually reserved for category-defining businesses. Curious about the financial rocket fuel driving these projections? Unlock the details that set this fair value so far above today’s market price.

Result: Fair Value of $86.09 (UNDERVALUED)

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

However, sudden regulatory shifts or intensified competition from industry giants could quickly disrupt Hims & Hers Health’s ambitious growth trajectory and challenge current market assumptions.

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

Another View: Multiples Tell a Different Story

While some see Hims & Hers Health as deeply undervalued based on projected growth, classic valuation multiples introduce caution. The company’s price-to-earnings ratio sits at 51.8x, substantially higher than both the industry average of 20.7x and the peer group at 29.1x. Its fair ratio, calculated at 40.2x, suggests plenty of exuberance is already priced in, raising the real risk that shares have outpaced near-term fundamentals. Could market optimism be running ahead of reality?

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

Build Your Own Hims & Hers Health Narrative

If these perspectives haven’t convinced you or you’d rather dive into the numbers on your own, it’s never been easier to build your own view 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.

Looking for More Market Opportunities?

Expand your potential by moving beyond Hims & Hers Health and unlock game-changing opportunities with strategies trusted by top investors. Your smartest next move could be just a click away.

• Propel your watchlist with these 27 AI penny stocks that are driving innovation in artificial intelligence, automation, and next-generation computing solutions.
• Maximize income with these 18 dividend stocks with yields > 3% that deliver attractive yields alongside financial resilience and reliable track records.
• Catch early momentum in these 3590 penny stocks with strong financials that are transforming entire industries with relentless growth and untapped potential.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com