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, with a P/E ratio of 35, a Price to Book Value of 3.98, and an EV to EBITDA of 20.94, all of which are significantly higher than many of its peers. For instance, ADT, Inc. has a P/E of 10.02 and an EV to EBITDA of 5.12, while Grand Canyon Education, Inc. shows a P/E of 33.38 and an EV to EBITDA of 23.11, highlighting the premium at which Progyny is trading.
In terms of recent performance, Progyny's stock has underperformed compared to the S&P 500, with a 3-year return of -50.09% versus the S&P's 81.19%, and a 5-year return of -30.46% compared to the S&P's 91.29%. This underperformance further reinforces the notion that the current valuation may not be justified given the company's financial metrics and market performance.