Hims & Hers Health (HIMS) is in the spotlight after U.S. Senator Jim Banks urged the FDA and FTC to review its GLP-1 advertising and subscription practices, just as the company ramps up growth initiatives.

At a share price of US$26.19, Hims & Hers has swung sharply over the past year, with a 90 day share price return of 18.19% contrasting with a year to date decline of 21.61% and a 1 year total shareholder return down 53.51%. This suggests recent momentum is rebuilding after a tougher stretch as investors weigh regulatory questions alongside acquisitions, AI investments, and new clinical leadership.

If regulatory headlines around GLP 1 telehealth are on your radar, this can be a good moment to see what else is moving in healthcare and related technology through 39 healthcare AI stocks.

With Hims & Hers trading near its analyst price target and carrying an intrinsic value estimate that implies a large discount, the key question is simple: are you looking at an undervalued growth platform or a stock where the market already sees what comes next?

Most Popular Narrative: 84.9% Undervalued

Deep_Insights values Hims & Hers at $173.02 per share, far above the last close at $26.19, framing a wide gap between narrative fair value and market pricing.

Over the long term (10yrs), Hims & Hers has an unusually large addressable market ahead of it. The company’s growth is driven by three reinforcing dimensions:

• Expanding market size: digital healthcare adoption continues to grow globally

• Category expansion: new offerings such as hormonal health, longevity, and sleep

• International scaling: multiple geographies already in the pipeline (e.g. Brazil, Australia)

Curious how a double digit discount rate still supports that fair value? The narrative leans on compounding revenue, rising margins, and a premium future earnings multiple. The exact mix matters more than any single number.

Result: Fair Value of $173.02 (UNDERVALUED)

However, this upbeat narrative still hinges on regulatory scrutiny of GLP 1 marketing resolving without lasting damage to the brand, and on heavy investment and acquisition spending translating into sustainable profitability rather than earnings pressure.

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Another View: What The Market Is Paying Today

That $173.02 user fair value is one side of the story. On current pricing, Hims & Hers trades on a P/S ratio of 2.6x, which is more expensive than the US Healthcare industry at 1.2x and peers at 1.4x, even though the fair ratio model points to 4.7x.

This gap leaves you weighing valuation risk versus potential re rating, and deciding whether the higher current multiple is a premium you are comfortable paying or a signal to be cautious next to that long term upside story.

Next Steps

Seeing mixed signals in this story so far? Take a moment to review the numbers and sentiment for yourself, then weigh the 2 key rewards and 1 important warning sign.

Looking for more investment ideas?

If Hims & Hers has your attention, do not stop here. Broaden your watchlist with other focused stock ideas that could fit different roles in your portfolio.

• Hunt for overlooked value by scanning the screener containing 21 high quality undiscovered gems that pair strong fundamentals with limited current attention.
• Focus on quality at a discount with the 49 high quality undervalued stocks that highlights companies combining solid cash flows with supportive balance sheets.
• Prioritise resilience by reviewing the 61 resilient stocks with low risk scores and see which stocks show lower overall risk scores before sentiment catches up.

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.