HLF Relative Valuation
HLF's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HLF is overvalued; if below, it's undervalued.
Historical Valuation
Herbalife Ltd (HLF) is now in the Undervalued zone, suggesting that its current forward PE ratio of 4.84 is considered Undervalued compared with the five-year average of 6.76. The fair price of Herbalife Ltd (HLF) is between 15.25 to 27.50 according to relative valuation methord. Compared to the current price of 14.24 USD , Herbalife Ltd is Undervalued By 6.62%.
Relative Value
Fair Zone
15.25-27.50
Current Price:14.24
6.62%
Undervalued
4.84
PE
1Y
3Y
5Y
4.77
EV/EBITDA
Herbalife Ltd. (HLF) has a current EV/EBITDA of 4.77. The 5-year average EV/EBITDA is 6.37. The thresholds are as follows: Strongly Undervalued below 3.28, Undervalued between 3.28 and 4.82, Fairly Valued between 7.91 and 4.82, Overvalued between 7.91 and 9.45, and Strongly Overvalued above 9.45. The current Forward EV/EBITDA of 4.77 falls within the Undervalued range.
5.93
EV/EBIT
Herbalife Ltd. (HLF) has a current EV/EBIT of 5.93. The 5-year average EV/EBIT is 7.97. The thresholds are as follows: Strongly Undervalued below 4.13, Undervalued between 4.13 and 6.05, Fairly Valued between 9.89 and 6.05, Overvalued between 9.89 and 11.80, and Strongly Overvalued above 11.80. The current Forward EV/EBIT of 5.93 falls within the Undervalued range.
0.26
PS
Herbalife Ltd. (HLF) has a current PS of 0.26. The 5-year average PS is 0.41. The thresholds are as follows: Strongly Undervalued below -0.15, Undervalued between -0.15 and 0.13, Fairly Valued between 0.69 and 0.13, Overvalued between 0.69 and 0.96, and Strongly Overvalued above 0.96. The current Forward PS of 0.26 falls within the Historic Trend Line -Fairly Valued range.
0.00
P/OCF
Herbalife Ltd. (HLF) has a current P/OCF of 0.00. The 5-year average P/OCF is 4.50. The thresholds are as follows: Strongly Undervalued below -1.19, Undervalued between -1.19 and 1.65, Fairly Valued between 7.35 and 1.65, Overvalued between 7.35 and 10.20, and Strongly Overvalued above 10.20. The current Forward P/OCF of 0.00 falls within the Undervalued range.
0.00
P/FCF
Herbalife Ltd. (HLF) has a current P/FCF of 0.00. The 5-year average P/FCF is 7.65. The thresholds are as follows: Strongly Undervalued below -0.90, Undervalued between -0.90 and 3.37, Fairly Valued between 11.93 and 3.37, Overvalued between 11.93 and 16.20, and Strongly Overvalued above 16.20. The current Forward P/FCF of 0.00 falls within the Undervalued range.
Herbalife Ltd (HLF) has a current Price-to-Book (P/B) ratio of -2.16. Compared to its 3-year average P/B ratio of -1.15 , the current P/B ratio is approximately 88.43% higher. Relative to its 5-year average P/B ratio of -1.95, the current P/B ratio is about 10.90% higher. Herbalife Ltd (HLF) has a Forward Free Cash Flow (FCF) yield of approximately 16.38%. Compared to its 3-year average FCF yield of 17.52%, the current FCF yield is approximately -6.50% lower. Relative to its 5-year average FCF yield of 14.41% , the current FCF yield is about 13.73% lower.
-2.16
P/B
Median3y
-1.15
Median5y
-1.95
16.38
FCF Yield
Median3y
17.52
Median5y
14.41
Competitors Valuation Multiple
The average P/S ratio for HLF's competitors is 0.76, providing a benchmark for relative valuation. Herbalife Ltd Corp (HLF) exhibits a P/S ratio of 0.26, which is -66.14% above the industry average. Given its robust revenue growth of 2.69%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of HLF increased by 160.81% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 1.53 to 4.12.
The secondary factor is the Revenue Growth, contributed 2.69%to the performance.
Overall, the performance of HLF in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is Herbalife Ltd (HLF) currently overvalued or undervalued?
Herbalife Ltd (HLF) is now in the Undervalued zone, suggesting that its current forward PE ratio of 4.84 is considered Undervalued compared with the five-year average of 6.76. The fair price of Herbalife Ltd (HLF) is between 15.25 to 27.50 according to relative valuation methord. Compared to the current price of 14.24 USD , Herbalife Ltd is Undervalued By 6.62% .
What is Herbalife Ltd (HLF) fair value?
HLF's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Herbalife Ltd (HLF) is between 15.25 to 27.50 according to relative valuation methord.
How does HLF's valuation metrics compare to the industry average?
The average P/S ratio for HLF's competitors is 0.76, providing a benchmark for relative valuation. Herbalife Ltd Corp (HLF) exhibits a P/S ratio of 0.26, which is -66.14% above the industry average. Given its robust revenue growth of 2.69%, this premium appears unsustainable.
What is the current P/B ratio for Herbalife Ltd (HLF) as of Jan 08 2026?
As of Jan 08 2026, Herbalife Ltd (HLF) has a P/B ratio of -2.16. This indicates that the market values HLF at -2.16 times its book value.
What is the current FCF Yield for Herbalife Ltd (HLF) as of Jan 08 2026?
As of Jan 08 2026, Herbalife Ltd (HLF) has a FCF Yield of 16.38%. This means that for every dollar of Herbalife Ltd’s market capitalization, the company generates 16.38 cents in free cash flow.
What is the current Forward P/E ratio for Herbalife Ltd (HLF) as of Jan 08 2026?
As of Jan 08 2026, Herbalife Ltd (HLF) has a Forward P/E ratio of 4.84. This means the market is willing to pay $4.84 for every dollar of Herbalife Ltd’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Herbalife Ltd (HLF) as of Jan 08 2026?
As of Jan 08 2026, Herbalife Ltd (HLF) has a Forward P/S ratio of 0.26. This means the market is valuing HLF at $0.26 for every dollar of expected revenue over the next 12 months.