Is HealthStream, Inc. overvalued or undervalued?

As of 23 May 2025, HealthStream, Inc. has moved from a valuation grade of very expensive to expensive, indicating a slight improvement in its valuation outlook. The company is currently considered overvalued. Key ratios include a P/E ratio of 46, an EV to EBITDA of 12.29, and a PEG ratio of 6.67, which are all significantly higher than industry norms.
In comparison to peers, HealthStream's P/E ratio of 43.74 is notably elevated when compared to Couchbase, Inc. which is classified as risky with a P/E of -14.87, and WalkMe Ltd., also risky, with a P/E of -51.68. Additionally, HealthStream's return over the past year has lagged behind the S&P 500, which could further reinforce the perception of overvaluation given its recent performance.