Why Hims & Hers Health Stock Is Back in the Spotlight

Hims & Hers Health (HIMS) has drawn intense attention after launching a lower priced compounded semaglutide pill. This needle free alternative to Wegovy immediately faced legal threats from Novo Nordisk and tougher language from the FDA.

The legal and regulatory pushback around Hims & Hers Health’s compounded semaglutide pill comes after a strong run over the past few years, but recent momentum has cooled, with a 30 day share price return of 33.78% and a 1 year total shareholder return of 41.98% contrasting with a very large 3 year total shareholder return of around 2.6x.

If this GLP 1 story has your attention, it could be a good moment to see what else is moving in health related tech, starting with 25 healthcare AI stocks.

With Hims & Hers now trading around $23.48 after sharp swings and carrying an intrinsic estimate that suggests around a 64% discount, the key question is whether the recent pullback creates an entry point or whether the market is already accounting for future growth.

Most Popular Narrative: 72.7% Undervalued

According to the most followed narrative on Hims & Hers Health, the current price of $23.48 sits well below an implied fair value of $86.09. That gap rests on some very specific growth and profitability assumptions.

Hims & Hers Health is not trying to compete with traditional healthcare, it is rewriting the rules. Hims is vertically integrating diagnosis, fulfilment, treatment, and retention under one platform, avoiding insurance entirely, and personalising care at scale.

Readers may be curious about what kind of revenue trajectory and profit margins could justify that valuation gap. The narrative leans on rapid earnings growth and premium future multiples and invites a closer look at the long term assumptions that underpin the $86.09 figure.

Result: Fair Value of $86.09 (UNDERVALUED)

However, the narrative also depends on Hims & Hers sustaining its regulatory footing and telehealth model, with any tighter rules or legal setbacks potentially changing the story quickly.

Another Angle: Earnings Multiple Flags a Very Different Story

The popular user narrative leans heavily on upside, but Hims & Hers looks expensive on a simple earnings check. At a P/E of 40x, the shares trade well above the US Healthcare average of 23.2x, the peer average of 33.7x, and our fair ratio of 25x.

That gap suggests the market is already paying up for future profit growth. This raises the question: are you comfortable paying a premium multiple when sentiment around regulation and growth can turn quickly?

Build Your Own Hims & Hers Health Narrative

If you look at the numbers and reach a different conclusion, or simply prefer to weigh the data yourself, you can build a fresh thesis in just a few minutes using Do it your way.

A great starting point for your Hims & Hers Health research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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.