Is Talkspace, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Talkspace, Inc. has moved from very attractive to attractive. The company appears to be overvalued, particularly given its high P/E ratio of 188, which is significantly above the peer average of 156.07, and its negative EV to EBITDA of -170.31, indicating substantial operational challenges. Additionally, the PEG ratio stands at 1.51, suggesting that the stock may not be justified by its growth prospects.
In comparison to its peers, Fulgent Genetics, Inc. has a P/E of -21.28, while Enhabit, Inc. has a P/E of 12.80, both indicating that Talkspace is trading at a premium despite its negative financial metrics. The stock has outperformed the S&P 500 in the short term, with a 3-year return of 429.14% compared to the S&P 500's 76.66%, but it has underperformed over the longer term, with a 5-year return of -65.53% versus the S&P 500's 109.18%. This mixed performance further supports the conclusion that Talkspace is currently overvalued.