Planet Fitness (PLNT) is under pressure after multiple law firms launched securities class actions alleging misleading disclosures about membership growth and marketing effectiveness, following disappointing results and lowered guidance that coincided with a sharp stock drop.

At a share price of $54.22, Planet Fitness is still feeling the impact of the May 2026 selloff, with the stock down 50.59% on a year to date share price basis and the 1 year total shareholder return down 51.25%. Together, these figures suggest momentum has been fading despite a modest 2.81% 30 day share price gain.

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So is Planet Fitness pricing now mostly about frustration with lawsuits and guidance cuts, or is the share price starting to reflect the core franchise and equipment earnings power more closely? The valuation numbers help frame that gap.

Most Popular Narrative: 18.6% Undervalued

The most followed Planet Fitness narrative sees fair value at $66.64 versus the last close of $54.22, which implies a gap the market has not closed yet.

Rising Black Card penetration, combined with proven ability to implement price increases with minimal impact on churn, signals future near-term potential for further price hikes at this higher margin tier, directly benefitting average revenue per member and overall earnings.

Curious what sits behind that valuation gap? The most followed view leans heavily on membership trends, richer margins, and a future earnings profile that looks very different to today. The key inputs are all laid out, but the way they fit together is not obvious at first glance.

Result: Fair Value of $66.64 (UNDERVALUED)

However, the click to cancel rollout, as well as any slowdown in new club economics or franchisee health, could pressure Planet Fitness membership trends and challenge this undervaluation story.

Next Steps

Sentiment around Planet Fitness is clearly split, so it makes sense to move quickly and weigh the full picture of risks and rewards yourself using the 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.