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 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 its 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, highlighting the relative expense of Life Time Group Holdings.
While the company has shown a robust 3-year return of 162.24%, it has underperformed the S&P 500 over the past year, returning only 1.86% compared to the index's 14.08%. This performance, coupled with its elevated valuation ratios, reinforces the conclusion that Life Time Group Holdings, Inc. is currently overvalued.