Is HealthStream, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for HealthStream, Inc. has 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 PEG ratio of 6.67, which indicate that while the company has a high valuation relative to earnings, it is more aligned with its peers compared to some of the riskier options in the market.
In comparison to its peers, HealthStream's P/E ratio of 40.95 is significantly lower than Pagaya Technologies Ltd.'s 71.76, while Couchbase, Inc. shows a negative P/E, highlighting HealthStream's relatively stable position. Despite the recent underperformance, with a year-to-date return of -22.64% compared to the S&P 500's 16.30%, the long-term 5-year return of 34.43% suggests potential for recovery.