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Hims & Hers Health (HIMS) Stock May Trade At A Discount To Sales

Simply Wall St · 3d ago

Hims & Hers Health has delivered a very large 3 year share price gain, yet the recent pullback leaves a basic question on the table for you as an investor. Is the current US$27.71 price still in line with what the business is generating in sales, or has the stock moved ahead of its top line?

  • The stock has climbed roughly 3.8x over the past 3 years, which puts real pressure on the sales base to justify where the shares now trade.
  • The rollout of new testosterone therapies and the Hers launch in Australia can support expectations for higher revenue, which directly feeds into how rich or restrained a sales based valuation might look.
  • There is a second opinion on Hims & Hers Health worth weighing. See what analysts think Hims & Hers Health's shares could be worth.

The issue now is whether Hims & Hers Health's current share price is adequately supported by its sales when measured against the Fair Ratio benchmark.

If you want a second reference point while assessing whether Hims & Hers Health's sales still justify its valuation, a focused screen of 34 healthcare AI stocks can give you more ideas for follow up research.

Is Hims & Hers Health a Bargain on Sales?

P/S fits Hims & Hers Health because the business is still being weighed on earnings, so investors often anchor on revenue instead. At the current price, the stock trades on a P/S of 2.5x, which is above the broader Healthcare sector average of 1.3x and also ahead of the more focused peer group at 2.2x.

The Fair Ratio model, which adjusts the P/S you might expect for Hims & Hers Health given its size, margins and risk profile, points to a higher level than where the shares change hands today. Because the market is already reacting to the expanded testosterone range and the Hers rollout in Australia, the fact that the P/S still comes in below that tailored benchmark suggests investors are not paying a premium multiple for the growth story that model implies. Explore the numbers behind Hims & Hers Health's P/S valuation.

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

The Hims & Hers Health Narrative: What Would Justify Today's Price?

Simply Wall St Narratives pick up where the valuation puzzle for Hims & Hers Health's P/S ratio leaves off by spelling out which future paths for growth, profitability and earnings would need to hold for the stock to be worth meaningfully more or less than today's price, and they sit on the platform's Community page. Each narrative sets out Hims & Hers Health's fair value as a thesis that can be checked over time, so you can see how the underlying story holds up as new information arrives.

Community narratives around Hims & Hers Health now split between a multi decade expansion story and concern that execution targets are already priced in.

Bull case: 84% undervalued

"The important point is not simply entering new countries. Hims is bringing different categories and both brands to international markets..."

Discover why this Narrative puts Hims & Hers Health at 84% undervalued.

Bear case: 20% overvalued

"The numbers imply the share price already bakes in successful execution on branded GLP-1 weight loss, peptide therapies and global scale..."

Explore why this Narrative puts Hims & Hers Health at 20% overvalued.

One more angle on Hims & Hers Health that could change your view

Price tags and sales multiples only tell part of the story for Hims & Hers Health, because the people steering the business and how they are rewarded can heavily shape what happens next. See who runs Hims & Hers Health and how they are paid.