Is Hims & Hers Health, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Hims & Hers Health, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company is currently considered overvalued based on its high P/E ratio of 74, which is significantly above the industry average, and an EV to EBITDA ratio of 89.10. Additionally, the PEG ratio stands at an unusually low 0.01, suggesting that the stock may not be justified by its growth prospects.
In comparison to its peers, Hims & Hers Health, Inc. has a P/E ratio of 77.97, while Guardant Health, Inc. is at -14.92, and RadNet, Inc. shows a much higher P/E of 132.34, indicating a wide disparity in valuation metrics across the sector. The company's recent stock performance has been volatile, with a year-to-date return of 73.61%, significantly outpacing the S&P 500's 2.44% return, yet the substantial drop of 29.78% in the past week raises concerns about its current valuation sustainability.