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Hims & Hers Health (HIMS) Could Be 83% Undervalued As Lawsuits Test Its Valuation

Simply Wall St · 1d ago

Hims & Hers Health (HIMS) is under intense scrutiny after the Federal Trade Commission and state regulators sued over alleged mishandling of health data, difficult subscription cancellations, and prescribing practices, prompting multiple securities class action filings.

Recent trading suggests pressure is building rather than easing for Hims & Hers Health. The share price fell 6.7% on the day, contributing to a 30 day share price decline of 8.66% and a year to date drop of 15.03%, while the 1 year total shareholder return is down 46.69%. This comes after a very large 3 year total shareholder return and a 277.03% 5 year total shareholder return that still keep long term holders well ahead.

Spot 31 resilient stocks with low risk scores that may offer steadier exposure than Hims & Hers Health while still keeping you in the healthcare and digital health story.

Bulls point to Hims & Hers Health’s rapid revenue and net income growth, while bears focus on lawsuits and a sharp share price slide. Which side does the current valuation actually support?

Most Popular Narrative: 83% Undervalued

On the most followed view of Hims & Hers Health, the gap between the market price of $28.39 and a narrative fair value of $171.19 is wide. As a result, the focus shifts to why some investors think the long term story justifies that kind of number.

Over ten years, Hims & Hers has an unusually large addressable market ahead. That is why growth is not slowing down for a long time.

Growth comes from several reinforcing dimensions:

• Market expansion, digital healthcare adoption globally

• Category expansion, hormonal health, longevity, sleep and more

• International scaling, Brazil, Australia and other markets

• Growth within existing categories, deeper penetration and cross-selling

See why 77 investors see Hims & Hers Health as 83% undervalued.

Result: Fair Value of $171.19 (UNDERVALUED)

Still, Hims & Hers Health faces real pressure if the regulatory cases escalate or if international expansion stalls and its broader healthcare platform story loses momentum.

Find out about the key risks to this Hims & Hers Health narrative.

Another View: What The Market Is Paying For Hims & Hers Health

On price, Hims & Hers Health tells a different story. The stock trades on a P/S ratio of 2.6x, which is more expensive than the US Healthcare sector at 1.2x and above the 2.2x peer average, even though the fair ratio points to a much higher 5.1x that the market could eventually move toward.

That gap suggests investors are already paying a premium for Hims & Hers Health, yet not the kind of premium implied by the fair ratio. Which side of that spread do you think carries more risk if expectations change?

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:HIMS P/S Ratio as at Sep 2026
NYSE:HIMS P/S Ratio as at Sep 2026

Next Steps

Sentiment around Hims & Hers Health is split, and the clock rarely pauses while investors debate. Act quickly, review the underlying data, and weigh both the regulatory pressure and growth story by starting with 2 key rewards and 1 important warning sign.

Looking for more Hims & Hers Health style ideas?

If Hims & Hers Health feels too volatile right now, use this moment to widen your watchlist and line up alternatives before the next wave of headlines hits.

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.