Is HealthStream, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for HealthStream, Inc. moved from expensive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 46, an EV to EBITDA of 12.29, and a Price to Book Value of 2.40. In comparison, its peer WalkMe Ltd. has a P/E of -51.68, while Enfusion, Inc. shows a very expensive P/E of 260.46, indicating that HealthStream is positioned more favorably within its competitive landscape.
Despite the fair valuation, HealthStream's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -22.64% compared to the index's gain of 16.30%. This trend highlights potential concerns about the company's growth prospects relative to the broader market.