Is HealthEquity, Inc. overvalued or undervalued?

As of 16 June 2025, the valuation grade for HealthEquity, Inc. has moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company is currently considered overvalued. Key ratios include a P/E ratio of 53, an EV to EBITDA of 24.08, and a PEG ratio of 0.50, which suggests that despite a high P/E, the growth expectations may not justify the price.
In comparison to its peers, HealthEquity, Inc. has a higher P/E ratio than Northern Trust Corp., which stands at 11.61, and Corebridge Financial, Inc. at 34.60, both of which are in a different valuation category. The disparity in valuation metrics highlights that HealthEquity is priced significantly higher than its peers, reinforcing the conclusion of overvaluation. Additionally, while HealthEquity has outperformed the S&P 500 over the past year with a return of 21.01% compared to 10.26%, the elevated valuation ratios suggest that this performance may not be sustainable in the long term.