Pomerantz LLP has opened an investigation into Planet Fitness (PLNT) after the company reported slower than expected net member growth, paused a planned Black Card price increase, and lowered several 2026 growth targets.

Those revised 2026 targets and the legal investigation appear to line up with fading momentum, with the share price down 20.18% over 30 days and year to date total shareholder return down 53.22%, pointing to a sharp reset in expectations.

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With the stock down sharply over multiple timeframes and trading below some analyst targets and certain intrinsic value estimates, the key question now is whether this reset leaves Planet Fitness undervalued or if the market already reflects slower growth ahead.

Most Popular Narrative: 54.2% Undervalued

Planet Fitness' most followed narrative pegs fair value at about $112.06 per share, more than double the recent $51.33 close. This frames today’s reset as a valuation gap story rather than just a sentiment swing.

Accelerating engagement from younger, health-conscious demographics (Gen Z and soon Gen Alpha), combined with program successes like the High School Summer Pass, is expanding Planet Fitness's addressable membership base, driving revenue growth and supporting longer-term membership penetration.

Curious what assumptions need to stack up for that gap to make sense? This narrative leans heavily on steady revenue expansion, firmer margins, and a richer earnings multiple that outpaces the broader hospitality group.

Result: Fair Value of $112.06 (UNDERVALUED)

However, that upside case depends on easing attrition after click to cancel, as well as on expansion that does not pressure franchisee economics or club level returns.

Next Steps

With sentiment clearly split between concern and optimism, it makes sense to move quickly and review the underlying data for yourself using our 4 key rewards and 2 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.