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 appears to be overvalued, with a P/E ratio of 35, a Price to Book Value of 3.98, and an EV to EBITDA ratio of 20.94. In comparison to peers, Progyny's P/E ratio is significantly higher than ADT, Inc. at 10.02 and MAXIMUS, Inc. at 15.70, indicating that it is priced at a premium relative to its industry counterparts.
Despite a strong recent performance, with a 1-year return of 42.20% compared to the S&P 500's 12.65%, the long-term outlook shows a concerning trend, as the stock has underperformed over 3 and 5 years with returns of -37.28% and -18.58%, respectively. This suggests that while the company has had short-term gains, its long-term valuation may not be justified given its current metrics.