Key Takeaways:
- Revenue Momentum: Hims & Hers Health delivered $600 million Q3 revenue, up 49% YoY, confirming sustained subscription demand and platform scale.
- Margin Profile: Hims & Hers Health generated a 13% EBITDA margin but only 5% modeled operating margin, highlighting cost leverage as a key driver.
- Price Projection: Based on 31% revenue growth and a 29x multiple, Hims & Hers Health stock could reach $42 by 2027.
- Return Profile: From $30 today, Hims & Hers Health implies 39% total upside or about 18% annual returns over 2 years.
Hims & Hers Health (HIMS) is a subscription telehealth platform that generated about $2 billion LTM revenue, showing strong demand for recurring care.
Hims & Hers Health announced the Yourbio Health acquisition in December 2025, which expands diagnostics access and supports higher lifetime revenue per user.
In Q3 2025, Hims & Hers Health reported $600 million revenue, up 49% year-over-year, confirming continued user growth and product expansion.
The company delivered $70 million Q3 net income with 13% EBITDA margin, showing improving scale despite a 2% EBIT margin.
Even with revenue growth near 31% and a $5 billion market cap, the stock trades near 29x earnings, raising valuation tension.
What the Model Says for HIMS Stock
We evaluated Hims & Hers Health using its revenue scale, improving profitability, and subscription positioning reflected in the valuation model output.
Based on 30.5% revenue growth, 5.1% operating margins, and a 29.4x exit P/E, the model estimates value expansion as earnings mature.
This points to a $42.27 target price, implying a 38.7% total return and an 18.3% annualized return over 1.9 years.
Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for HIMS stock:
1. Revenue Growth: 30.5%
Hims & Hers Health stock expanded revenue from $870 million in 2023 to $1.48 billion in 2024, confirming sustained demand across core telehealth categories.
HIMS stock’s revenue reached $600 million in Q3 2025, rising 49% year over year, supported by subscription renewals and higher customer lifetime value.
Growth risks include category competition and regulatory friction, while support comes from product expansion and international reach.
According to consensus analyst estimates, a 30.5% revenue growth assumption balances strong recent execution with moderation from earlier 60% growth rates.
2. Operating Margins: 5.1%
Hims & Hers Health stock shifted from negative operating margins in 2023 to positive margins in 2024 as scale improved fixed cost absorption.
Q3 2025 EBITDA margin reached 13%, while EBIT margin remained near 2%, reflecting marketing intensity and platform investment.
Margin upside depends on sales efficiency and fulfillment leverage, while downside risk comes from continued customer acquisition spending.
A 5.1% operating margin reflects normalization between current EBITDA strength and still-elevated operating costs.
3. Exit P/E Multiple: 29.4x
Hims & Hers Health stock trades near 29x forward earnings, reflecting strong growth expectations but ongoing scrutiny around margin durability.
Historically, high-growth consumer health platforms sustain elevated multiples when revenue growth exceeds 30% with visible profitability progress.
Multiple risk stems from margin volatility, while support comes from recurring revenue and expanding healthcare services.
Based on street consensus estimates, a 29.4x exit multiple supports a $42.27 target price and implies an 18.3% annualized return.
What Happens If Things Go Better or Worse?
Hims & Hers Health outcomes depend on subscription retention, brand trust in regulated categories, and cost discipline as the platform scales through 2029.
- Low Case: If demand slows and marketing intensity remains high, revenue grows 18.5% with net margins near 9.2% → 9.3% annualized return.
- Mid Case: With core execution holding and operating efficiency improving, revenue grows 20.5% and net margins reach 10.1% → 18.5% annualized return.
- High Case: If product expansion and retention outperform expectations, revenue reaches 22.5% growth and net margins approach 11.0% → 27.9% annualized return.
Execution consistency and marketing efficiency support the $59.50 target price through revenue scale and margin normalization without multiple expansion.
How Much Upside Does It Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
