• This article examines what the current share price of Hims & Hers Health may be implying about the company, and whether the stock still offers good value after its recent performance.
• The stock recently closed at US$32.34, with a 6.8% decline over 7 days, a 13.1% decline over 30 days, a 3.2% decline year to date, and a 24.9% gain over the past year. Over a longer horizon, it has risen by around 4x over three years and 79.3% over five years.
• These moves have kept Hims & Hers Health firmly on investors' watchlists, particularly as they reassess what that performance could mean for the current share price. This article focuses on valuation tools rather than short-term headlines, to help you consider how the recent share price history compares with what the underlying business might be worth.
• According to our checks, Hims & Hers Health scores 2 out of 6 for potential undervaluation. Next, we will walk through the standard valuation approaches that feed into that score, and then finish with a broader way to think about what valuation may mean for this stock.

Hims & Hers Health scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Hims & Hers Health Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model takes estimates of a company’s future cash flows, then discounts them back to today’s dollars to arrive at an estimated intrinsic value per share.

For Hims & Hers Health, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $189.4 million. Analyst estimates and subsequent extrapolations indicate free cash flow of $502.5 million by 2030, with interim annual projections between 2026 and 2035 discounted back to today using Simply Wall St’s assumptions.

Combining all those discounted projections gives an estimated intrinsic value of about $63.39 per share. Compared with the recent share price of $32.34, the DCF output suggests the stock is around 49.0% undervalued on this set of cash flow assumptions.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Hims & Hers Health is undervalued by 49.0%. Track this in your watchlist or portfolio, or discover 881 more undervalued stocks based on cash flows.

Approach 2: Hims & Hers Health Price vs Earnings

For profitable companies, the P/E ratio is a useful shorthand because it links what you pay for each share to the earnings that support that share. It also naturally reflects what the market is willing to pay for those earnings today.

Growth expectations and risk both influence what feels like a normal P/E. Faster expected earnings growth or lower perceived risk will usually support a higher P/E, while slower growth or higher risk tends to align with a lower multiple.

Hims & Hers Health is currently trading on a P/E of 55.03x. That compares with an average P/E of 22.93x for the Healthcare industry and a peer group average of 32.50x, so the stock is priced at a higher multiple than both those benchmarks.

Simply Wall St’s Fair Ratio for Hims & Hers Health is 27.30x. This is a proprietary estimate of what the P/E might be, given factors such as the company’s earnings growth profile, profit margins, industry, market cap and key risks. Because it blends these company specific drivers, it can be more informative than a simple comparison to industry or peers that may have very different characteristics.

Comparing the Fair Ratio of 27.30x with the current P/E of 55.03x suggests the shares are trading above that fair range.

Result: OVERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1445 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Hims & Hers Health Narrative

Earlier we mentioned that there is an even better way to understand valuation. Narratives let you write your own clear story for Hims & Hers Health by linking your view of the business to specific forecasts for revenue, earnings, margins and a fair value, then comparing that Fair Value to the current Price in a simple tool on Simply Wall St’s Community page, where millions of investors share views. That story automatically refreshes when new earnings or news arrive. For example, one Hims & Hers Health Narrative might assume a fair value of US$114 per share based on higher growth and profitability, while another uses a fair value of US$44.36 per share based on more cautious assumptions. Seeing that full spread side by side can help you decide how your own view lines up before you consider any buy or sell decision.

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

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.