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

As of 17 October 2025, the valuation grade for Life Time Group Holdings, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on several key metrics, including a P/E ratio of 29, an EV to EBITDA of 11.21, and a Price to Book Value of 2.33. In comparison to peers, Service Corp. International has a more favorable P/E of 21.11, while Planet Fitness, Inc. shows a significantly higher P/E of 47.24, further emphasizing Life Time's relative expense.
Despite a strong three-year return of 162.24%, which outperformed the S&P 500's 81.19%, the recent one-month decline of -7.59% compared to the S&P 500's 0.96% suggests potential concerns about sustainability. Overall, the combination of high valuation ratios and recent performance trends supports the conclusion that Life Time Group Holdings, Inc. is currently overvalued.