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 fairly valued based on its current metrics. Key ratios include a P/E ratio of 46, a Price to Book Value of 2.40, and an EV to EBITDA of 12.29, which suggest that while the company is not undervalued, it is also not excessively priced compared to its peers.
In comparison to its peers, HealthStream's P/E ratio of 40.95 is significantly lower than Pagaya Technologies Ltd.'s 71.76, indicating a more attractive valuation despite the higher absolute P/E. Couchbase, Inc. shows a negative P/E, further emphasizing HealthStream's relative stability. Although return data is not available, the company's performance can be assessed against the S&P 500, reinforcing the notion that HealthStream is positioned fairly within its market context.