Is HealthStream, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for HealthStream, Inc. has moved from very attractive to fair. The company appears to be overvalued based on its current financial metrics. Key ratios include a P/E ratio of 46, an EV to EBITDA of 12.29, and a PEG ratio of 6.67, all of which suggest that the stock is priced higher relative to its earnings and growth potential compared to peers.
In comparison, Pagaya Technologies Ltd. has a P/E of 71.76, indicating higher risk, while Couchbase, Inc. shows a negative P/E, reflecting its struggles. HealthStream's performance against the S&P 500 reveals a stark contrast, with a YTD return of -16.54% compared to the index's 13.30%, and a 3-year return of 19.60% versus 81.19% for the S&P 500, further underscoring its overvaluation in the current market context.