Is Talkspace, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Talkspace, Inc. has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The company is currently considered overvalued, primarily due to its high P/E ratio of 188 and a Price to Book Value of 4.85, which significantly exceed industry norms. Additionally, the EV to EBITDA ratio stands at an alarming -170.31, suggesting that the company's valuation metrics are not aligned with its financial performance.
In comparison to its peers, Talkspace, Inc. has a P/E ratio of 156.07, which is notably higher than Fulgent Genetics, Inc. at -21.28 and Enhabit, Inc. at 12.80, underscoring its expensive valuation relative to the market. The PEG ratio of 1.51 also indicates that the stock may not be justified by its growth prospects. Over the past year, Talkspace has returned 3.19%, significantly lagging behind the S&P 500's 19.89% return, reinforcing the notion that it may be overvalued in the current market environment.