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

As of 17 October 2025, the valuation grade for Hims & Hers Health, Inc. has moved from very expensive to expensive, indicating a shift in perception regarding its valuation. The company appears to be overvalued, particularly given its high P/E ratio of 74, a price-to-book value of 22.96, and an EV to EBITDA ratio of 89.10, which are significantly above industry norms. In comparison, Guardant Health, Inc. has a P/E ratio of -17.69, while Addus HomeCare Corp. shows a fair valuation with a P/E of 22.05, highlighting the relative overvaluation of Hims & Hers.
Despite strong recent performance, with a year-to-date return of 105.87% compared to the S&P 500's 13.30%, the elevated valuation ratios suggest that the stock may not sustain its current price levels. The company's high PEG ratio of 0.01 further complicates the valuation picture, indicating that future growth expectations may already be priced in. Overall, the combination of high valuation ratios and the recent downgrade in valuation grade suggests that Hims & Hers Health, Inc. is overvalued in the current market context.