Is eHealth, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for eHealth, Inc. has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company appears to be undervalued, given its low P/E ratio of 6, a price-to-book value of 0.20, and an EV to EBITDA ratio of 0.40, which are significantly lower than the industry averages. In comparison, Abacus Life, Inc., a peer in the insurance industry, has a much higher P/E ratio of 164.30, highlighting eHealth's relative undervaluation.
Despite recent challenges reflected in its year-to-date return of -44.89% compared to the S&P 500's 16.30%, eHealth has shown resilience with a 3-year return of 85.00%, outperforming the benchmark's 76.66%. This suggests that while the stock has faced short-term setbacks, its long-term potential remains strong, reinforcing the narrative of undervaluation.