FIGS stock has delivered a very strong 129.3% return over the past year, yet its valuation checks still suggest the shares are not an obvious bargain. Recent optimism around growth and profitability now sits alongside a low overall value score and an assessment that the stock screens as overvalued on market multiples.

• The 129.3% one year return signals that expectations around FIGS have shifted quickly and that recent buyers are paying a much higher price than they were a year ago.
• Stronger revenue growth and improved profitability can support the higher share price, but the expanded share repurchase program may also raise questions about how much cash is being directed to growth versus buybacks.
• With a value score of 2 out of 6, FIGS currently appears expensive on the broader checks rather than standing out as clearly undervalued.

The issue now is whether recent fundamentals and growth expectations are strong enough to justify FIGS' higher valuation after such a sharp one year move.

Is FIGS Getting Expensive on Earnings?

P/E is a useful check for FIGS because the company is currently profitable and investors can anchor the share price to its earnings base. Right now FIGS trades on a P/E of 38.5x, which is roughly double the luxury industry average of 19.4x and also below the peer group average of 48.2x. That puts the stock at a premium to the broader sector, but not at the very top end of peer valuations.

The tailored fair P/E ratio for FIGS is 17.2x based on its specific mix of growth prospects, margins, size and risks. This is far below the current 38.5x, which means the shares are trading well above what this framework would flag as a more grounded multiple. Despite the recent Q2 2026 results and upgraded outlook helping sentiment, the current P/E already reflects a strong degree of optimism about FIGS’ future earnings power.

On this P/E check, FIGS stock currently appears overvalued.

The FIGS Narrative: What Would Justify Today's Price?

Simply Wall St Narratives pick up where FIGS' valuation puzzle leaves off by spelling out the growth, margin and earnings paths that would need to hold for the stock to be worth materially more or less than today's price, and they sit on the Community page. Each one presents FIGS' fair value as a thesis about the business that you can revisit over time, rather than a single snapshot, so you can see how it holds up as new information comes through.

One of the top community narratives on FIGS: roughly fairly valued

"FIGS concentrates on a specific niche within the healthcare industry, medical professionals, and tailors its products to precisely match their requirements."

Do you think there's more to the story for FIGS? Head over to our Community to see what others are saying!

The Bottom Line

FIGS now screens as overvalued on market multiples, and the broader valuation checks are weak rather than supportive. That does not rule out further gains, but it does mean you are paying up for the current growth and margin story. The key question from here is whether FIGS can keep delivering on revenue and profitability strongly enough for earnings to catch up with the higher P/E, or whether the market eventually demands a cheaper entry point.

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.