Is eHealth, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for eHealth, Inc. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, with a P/E ratio of 6, a Price to Book Value of 0.20, and an EV to EBITDA ratio of 0.40, all suggesting that the stock is trading at a significant discount compared to its earnings and asset value. In comparison, peer Abacus Life, Inc. has a much higher P/E ratio of 164.30, highlighting eHealth's relative undervaluation within the insurance industry.
Despite its attractive valuation metrics, eHealth's recent stock performance has been poor, with a year-to-date return of -57.87% compared to the S&P 500's 12.22%. This stark contrast in returns reinforces the notion that the stock may be undervalued, as the market has not yet recognized its potential despite the favorable valuation ratios.