Is Hims & Hers Health (HIMS) A Bargain After Its Lilly Deal?
Eli Lilly’s new agreement with Hims & Hers Health (HIMS) puts Lilly’s obesity drugs Zepbound and Foundayo directly inside the telehealth platform, giving users streamlined access to FDA-approved GLP-1 treatments for weight loss.
The Lilly partnership landed after a choppy stretch for Hims & Hers Health, with the share price jumping 8.06% over the past day but still down 11.98% over 30 days and 22.18% year to date. The three year total shareholder return of about 2.8x highlights the strength of longer term momentum compared with the recent pullback as investors reassess both growth potential and regulatory risk around GLP 1 driven weight loss plans.
Scan 35 healthcare AI stocks that, like Hims & Hers Health, are reshaping how patients access treatments around weight loss, chronic care, and personalised digital health services.
After a three year run that turned Hims & Hers Health into a multi bagger, the share price pullback and wide gap to fair value estimates now collide. Is the recent drop enough to close that valuation spread?
Most Popular Narrative: 85% Undervalued
Hims & Hers Health last closed at $26.00, while the most followed narrative on the stock points to a fair value of $171.19 using a 7% discount rate. That gap frames a very different story to the one implied by the recent share price pullback.
Canada, Australia, the UK and Germany are becoming tangible growth opportunities. In just five months, Hims & Hers has expanded its Canadian offering and rolled out additional services across multiple markets and brands.
Australia is especially important, with Hims and Hers now both launched following the Eucalyptus acquisition. International expansion is no longer just a pipeline of opportunities, it is becoming execution.
See why 84 investors see Hims & Hers Health as 85% undervalued.
Result: Fair Value of $171.19 (UNDERVALUED)
Still, the Hims & Hers Health narrative could be hit by tighter GLP 1 regulation or slower international uptake that challenges current long term expansion assumptions.
Find out about the key risks to this Hims & Hers Health narrative.
Another View: What Multiples Say About Hims & Hers Health
There is a very different signal once you move away from narrative fair values and look at what investors currently pay for Hims & Hers Health on simple sales maths. The stock trades on a P/S of 2.4x, which is twice the US Healthcare industry average of 1.2x.
Against closer peers though, that same 2.4x P/S sits far below a 7.4x peer average. It also trails the 4.1x fair ratio that regression suggests the market could migrate toward over time. That mix of richer pricing than the broad sector yet cheaper levels than peers raises a basic question for you: Is this a premium story on sale or just an expensive outlier within healthcare?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Mixed signals around Hims & Hers Health can be confusing. Move quickly, review the underlying data yourself, and weigh the 2 key rewards and 1 important warning sign.
Looking for more investment ideas beyond Hims & Hers Health?
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