Related questions this article answers
- Is Hims & Hers stock overvalued right now?
- Is HIMS undervalued?
- Should I buy Hims & Hers stock?
- Is now a good time to buy HIMS?
- What is Hims & Hers's fair value?
- Is HIMS a good long term investment?
The short answer
Short answer: Hims & Hers looks overvalued at current levels. Compared with the recent share price of $28.27, the stock trades at 49.6x trailing earnings and 2.6x sales, while the current analyst target near $26.20 sits below the share price. That is a demanding setup even with gross margin near 73.8% and a healthy telehealth model.
Why valuing this kind of healthcare company is more complex than it looks
Hims & Hers sits in Healthcare and should be read as a telehealth platform rather than a traditional healthcare provider. The valuation usually depends on growth, retention, margins, and cash conversion.
The reason this matters is simple. Two companies can show similar headline multiples and still deserve very different valuations because their margins, cash conversion, and growth durability are not the same.
The 5 key metrics applied to Hims & Hers
A single ratio rarely tells the whole story. This framework starts with trailing P/E, forward P/E, PEG, EV/EBITDA, and price to sales, then keeps only the metrics that are present and usable for this company.
Trailing P/E
Trailing P/E compares the current share price with the last twelve months of earnings. For Hims & Hers, the current reading is 49.6x. Shows what the market is paying for Hims & Hers's recent earnings.
Forward P/E
Forward P/E uses expected earnings instead of trailing earnings. For Hims & Hers, the current reading is 87.6x. Shows how the market is valuing Hims & Hers's expected earnings.
EV/EBITDA
EV/EBITDA compares enterprise value with operating profit before depreciation and amortization. For Hims & Hers, the current reading is 52.0x. Adds a capital structure aware check on operating valuation.
Price to sales
Price to sales compares market value with revenue. For Hims & Hers, the current reading is 2.6x. Useful when revenue mix, margins, or future scaling matter as much as near term earnings.
Free cash flow yield
Free cash flow yield compares free cash flow with market value. For Hims & Hers, the current reading is 1.2%. Shows how much cash Hims & Hers is generating relative to its market value.
| Metric | Current value | What it suggests |
|---|---|---|
| Trailing P/E | 49.6x | Shows what the market is paying for Hims & Hers's recent earnings. |
| Forward P/E | 87.6x | Shows how the market is valuing Hims & Hers's expected earnings. |
| EV/EBITDA | 52.0x | Adds a capital structure aware check on operating valuation. |
| Price to sales | 2.6x | Useful when revenue mix, margins, or future scaling matter as much as near term earnings. |
| Free cash flow yield | 1.2% | Shows how much cash Hims & Hers is generating relative to its market value. |
| Gross margin | 73.8% | Shows how much of Hims & Hers's revenue remains after direct costs. |
| Revenue growth | 59.0% | Shows whether Hims & Hers's top line is still expanding. |
The table is a snapshot of the current setup. It is meant to frame the valuation question, not replace the company specific analysis below.
Hims & Hers's valuation breakdown
As of Q2 2026, Hims & Hers traded near $28.27 with a market value near $6.21B.
| Metric | Current value | What it suggests |
|---|---|---|
| Trailing P/E | 49.6x | Shows what the market is paying for Hims & Hers's recent earnings. |
| Forward P/E | 87.6x | Shows how the market is valuing Hims & Hers's expected earnings. |
| EV/EBITDA | 52.0x | Adds a capital structure aware check on operating valuation. |
| Price to sales | 2.6x | Useful when revenue mix, margins, or future scaling matter as much as near term earnings. |
| Free cash flow yield | 1.2% | Shows how much cash Hims & Hers is generating relative to its market value. |
| Gross margin | 73.8% | Shows how much of Hims & Hers's revenue remains after direct costs. |
| Revenue growth | 59.0% | Shows whether Hims & Hers's top line is still expanding. |
Metrics move with the market and with each earnings update. If a field is missing or stale, it is intentionally left out here rather than guessed.
What the numbers tell us
Hims & Hers has real operating momentum, but the valuation still asks a lot from the business. Gross margin near 73.8% and revenue growth near 59.0% show a strong platform, yet the current price is still asking investors to pay up for a lot of future execution.
- Hims & Hers's forward P/E is not offering much relief versus the trailing multiple, so the market may still be paying up before the earnings improvement is fully visible.
- Hims & Hers's price to sales multiple near 2.6x needs to be read beside revenue growth near 59.0%, because rich revenue multiples only hold up when growth quality stays intact.
- Hims & Hers's gross margin near 73.8% helps explain whether the market is dealing with a commodity style business or a business with stronger pricing power and business mix.
Hims & Hers's competitive position
Hims & Hers competes as a consumer facing telehealth platform with recurring care and direct to consumer products. That matters because investors are paying for brand, retention, and the ability to grow beyond one-off prescriptions.
What would make Hims & Hers look cheaper or more expensive?
What would make it look cheaper
- Hims & Hers would look cheaper if growth stayed strong while the earnings multiple moved lower.
- Hims & Hers would also look more attractive if cash generation kept improving faster than the share price.
What would make it look expensive
- Hims & Hers would look more expensive if growth slowed while the stock kept trading at a premium multiple.
- Hims & Hers would also look expensive if margin improvement stalled but the valuation stayed elevated.
Healthcare valuation context
Hims & Hers sits in Healthcare and should be read as a telehealth platform rather than a traditional healthcare provider. The valuation usually depends on growth, retention, margins, and cash conversion.
The verdict
Hims & Hers looks priced for a very strong execution path from here. The stock can still work, but future earnings and cash flow need to validate the premium already in the shares. Hims & Hers looks expensive when the market pays for continued growth before the cash flow path has fully proved itself.
This is analysis of publicly available market data. It is not financial advice, and it should be read in the context of personal goals, risk tolerance, and time horizon.
Want to run the numbers yourself?
Use TopTier Strategy research tools to review HIMS's live valuation profile, stock page, and related company analysis.
Frequently asked questions
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Data source: TopTier Strategy research platform - toptierstrategy.com/research. Data as of 2026-05-10T16:38:34.682856.