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Life Time Group Holdings (LTH) Could Be 21% Undervalued Following Raleigh Groundbreaking

Simply Wall St · 1d ago

Life Time Group Holdings (LTH) just broke ground on Life Time Living at The Exchange Raleigh, a mixed-use tower that blends luxury rentals with a full athletic club and rooftop beach club.

Recent trading shows some cooling at Life Time Group Holdings, with the share price down 4.2% over the past day and 4.6% over the week. However, a 14.8% 1‑month share price return and a 70.6% year to date gain, alongside a 78.8% 1‑year total shareholder return, point to momentum that has been building over a longer stretch as the market reacts to projects like Life Time Living at The Exchange Raleigh and other expansion efforts.

Scan beyond Life Time Group Holdings and compare it with other high quality operators using our hand picked 20 high quality undiscovered gems in health, fitness, and experience driven consumer services.

After a near 71% year to date climb, the question around Life Time Group Holdings shifts. Is it worth paying up for that momentum now, or waiting for a cooler entry before the next valuation check?

Most Popular Narrative: 21% Undervalued

At a last close of $45.54, the analyst consensus Narrative on Simply Wall St pegs Life Time Group Holdings' fair value at about $57.53, implying a material gap that analysts are tying to how the business is being built.

The expanding pipeline of new and larger Life Time Group Holdings club openings in affluent and high-density markets is now supported by guidance for 14 openings in 2026 and 12 to 14 in 2027. Management describes several recent locations reaching contribution-margin positive within a few months and reporting cash-on-cash returns above 30%, which points to further membership and revenue growth as the footprint increases.

See why 10 investors see Life Time Group Holdings as 21% undervalued.

Result: Fair Value of $57.53 (UNDERVALUED)

Still, the Life Time Group Holdings story depends on heavy 2026 CapEx and premium pricing, which could pressure cash generation if sale leasebacks or member demand disappoint.

Find out about the key risks to this Life Time Group Holdings narrative.

Another View: Multiples Paint A Richer Picture

The first fair value narrative around Life Time Group Holdings leans on analyst targets and long range earnings forecasts. A simple P/E check tells a different story. LTH trades at 24.4x earnings versus a fair ratio estimate of 21.3x, the US Hospitality group at 20.7x and direct peers at 25.3x. That mix suggests the stock may already carry a full price on earnings, even if analysts still see upside on their longer horizon, so consider how much valuation risk you are comfortable with if sentiment cools before fundamentals catch up.

To stress test that earnings based view against other signals, walk through the detailed valuation breakdown and see what the numbers indicate for both downside risk and upside potential in practical terms See what the numbers say about this price — find out in our valuation breakdown.

NYSE:LTH P/E Ratio as at Nov 2026
NYSE:LTH P/E Ratio as at Nov 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Life Time Group Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 32 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed messages on Life Time Group Holdings often leave investors split, so act promptly, review the full data set, and weigh both sides through 3 key rewards and 1 important warning sign

Looking for more investment ideas beyond Life Time Group Holdings?

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