Is Progyny, Inc. overvalued or undervalued?

As of 7 November 2025, Progyny, Inc. has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its high valuation ratios, including 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 such as ADT, Inc. have a P/E of 10.02 and an EV to EBITDA of 5.12, indicating that Progyny's valuation significantly exceeds that of its more attractively priced competitors.
Despite strong returns in the short term, with a 1-year stock return of 35.33% compared to the S&P 500's 12.65%, the long-term performance shows a concerning trend, as the 3-year and 5-year returns are -44.57% and -17.18%, respectively, against the S&P 500's substantial gains. This suggests that while Progyny may be performing well recently, its overall valuation does not align with its long-term performance, reinforcing the conclusion that it is overvalued.