Is Progyny, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Progyny, Inc. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 35, a Price to Book Value of 3.98, and an EV to EBITDA of 20.94. In comparison, peers like ADT, Inc. have a much lower P/E of 10.02, while Bright Horizons Family Solutions, Inc. also shows a high P/E of 36.94, suggesting that Progyny's valuation is not justified when considering its peers.
The stock has underperformed relative to the S&P 500 over multiple periods, particularly over the last three and five years, where it has returned -50.09% and -30.46%, respectively, compared to the S&P 500's returns of 81.19% and 91.29%. This trend reinforces the notion that Progyny, Inc. may be overvalued in the current market environment.