A Look At Hims & Hers Health (HIMS) Valuation As Canada GLP 1 Launch Expands Its Reach

Hims & Hers Health (HIMS) has begun offering generic semaglutide to eligible customers in Canada after Health Canada authorization, expanding its international reach and directly targeting demand in diabetes and weight management treatments.

See our latest analysis for Hims & Hers Health.

At a share price of $23.75, Hims & Hers Health has seen short term volatility, with the 30 day share price return down 22.28% and the 90 day return up 53.62%. The three year total shareholder return of 161.85% suggests investors who stayed invested over several years have seen a very large gain, even though the one year total shareholder return is down 56.68%. These moves frame the Canadian generic semaglutide launch and recent convertible note issuance as part of a broader re rating of both growth potential and risk.

If you are curious what else is moving around healthcare and AI enabled platforms, this is a good moment to scan the market using 34 healthcare AI stocks.

With Hims & Hers Health trading at $23.75, sitting at a discount to the average analyst price target and with a sizable implied intrinsic discount, you have to ask: is there still upside here, or is the market already pricing in future growth?

Most Popular Narrative: 72% Undervalued

Compared with the last close at $23.75, the most followed narrative from Simply Wall St users points to a fair value of $86.09. This implies a large gap between price and perceived potential, according to BlackGoat.

Hims & Hers Health isn’t a telehealth gimmick or a GLP-1 hype stock. It is quietly becoming the top-of-funnel infrastructure layer for healthcare in the United States. It is executing a strategy similar to Amazon, Spotify, and Costco: deliver more value per dollar spent, reinvest scale advantages, and win via customer-centric efficiency.

Read the complete narrative.

Curious how this valuation comes together. The narrative leans heavily on rapid revenue compounding, expanding margins, and a rich earnings multiple that many investors usually associate with premium growth stories.

Result: Fair Value of $86.09 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upbeat story can be tested quickly if regulatory scrutiny on GLP 1 prescribing tightens further, or if big pharma and tech competitors ramp up direct offerings.

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

Another Way To Look At It

The user narrative leans on a premium earnings multiple in future, but today the market is looking at sales. Hims & Hers Health trades on a P/S of 2.3x, richer than both peers at 1.3x and the wider US Healthcare sector at 1.2x, yet below a fair ratio of 4.7x. So is that a cushion or a warning sign for you?

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

Next Steps

Mixed signals in the story so far. If you want to move quickly and form your own view, weigh up the 2 key rewards and 1 important warning sign.

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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.

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