Is Life Time Group Holdings, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Life Time Group Holdings, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 29, a Price to Book Value of 2.33, and an EV to EBITDA of 11.21. In comparison to peers, Service Corp. International has a more attractive P/E of 21.11, while Planet Fitness, Inc. shows a significantly higher P/E of 47.24, further highlighting Life Time's relative overvaluation.
Despite a strong YTD return of 27.76%, which outperformed the S&P 500's 12.22%, the overall valuation metrics suggest that investors may be paying a premium for the stock at this time. The PEG ratio of 0.23 indicates potential growth at a reasonable price, but the elevated P/E ratio raises concerns about sustainability at current levels.