HSTM Valuation

HealthStream Inc

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26.670

+0.18(0.680%)1D

Overview
Forecast
Valuation
Earnings

HSTM Relative Valuation

HSTM'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, HSTM is overvalued; if below, it's undervalued.

Historical Valuation

HealthStream Inc (HSTM) is now in the Undervalued zone, suggesting that its current forward PS ratio of 2.52 is considered Undervalued compared with the five-year average of -31.46. The fair price of HealthStream Inc (HSTM) is between 36.89 to 42.73 according to relative valuation methord. Compared to the current price of 26.67 USD , HealthStream Inc is Undervalued By 27.7%.

Relative Value

Fair Zone

36.89-42.73

Current Price：26.67

27.7%

Undervalued

33.85

Trailing

Forward

9.70

EV/EBITDA

HealthStream Inc. (HSTM) has a current EV/EBITDA of 9.70. The 5-year average EV/EBITDA is 13.18. The thresholds are as follows: Strongly Undervalued below 7.99, Undervalued between 7.99 and 10.58, Fairly Valued between 15.78 and 10.58, Overvalued between 15.78 and 18.38, and Strongly Overvalued above 18.38. The current Forward EV/EBITDA of 9.70 falls within the Undervalued range.

29.09

EV/EBIT

HealthStream Inc. (HSTM) has a current EV/EBIT of 29.09. The 5-year average EV/EBIT is 27.18. The thresholds are as follows: Strongly Undervalued below -259.67, Undervalued between -259.67 and -116.25, Fairly Valued between 170.60 and -116.25, Overvalued between 170.60 and 314.02, and Strongly Overvalued above 314.02. The current Forward EV/EBIT of 29.09 falls within the Historic Trend Line -Fairly Valued range.

2.52

HealthStream Inc. (HSTM) has a current PS of 2.52. The 5-year average PS is 2.81. The thresholds are as follows: Strongly Undervalued below 2.12, Undervalued between 2.12 and 2.47, Fairly Valued between 3.16 and 2.47, Overvalued between 3.16 and 3.50, and Strongly Overvalued above 3.50. The current Forward PS of 2.52 falls within the Historic Trend Line -Fairly Valued range.

11.16

P/OCF

HealthStream Inc. (HSTM) has a current P/OCF of 11.16. The 5-year average P/OCF is 4.92. The thresholds are as follows: Strongly Undervalued below -10.06, Undervalued between -10.06 and -2.57, Fairly Valued between 12.42 and -2.57, Overvalued between 12.42 and 19.91, and Strongly Overvalued above 19.91. The current Forward P/OCF of 11.16 falls within the Historic Trend Line -Fairly Valued range.

24.36

P/FCF

HealthStream Inc. (HSTM) has a current P/FCF of 24.36. The 5-year average P/FCF is 24.67. The thresholds are as follows: Strongly Undervalued below -3.20, Undervalued between -3.20 and 10.73, Fairly Valued between 38.61 and 10.73, Overvalued between 38.61 and 52.55, and Strongly Overvalued above 52.55. The current Forward P/FCF of 24.36 falls within the Historic Trend Line -Fairly Valued range.

HealthStream Inc (HSTM) has a current Price-to-Book (P/B) ratio of 2.26. Compared to its 3-year average P/B ratio of 2.35 , the current P/B ratio is approximately -4.05% higher. Relative to its 5-year average P/B ratio of 2.30, the current P/B ratio is about -1.60% higher. HealthStream Inc (HSTM) has a Forward Free Cash Flow (FCF) yield of approximately 7.61%. Compared to its 3-year average FCF yield of 6.86%, the current FCF yield is approximately 10.89% lower. Relative to its 5-year average FCF yield of 6.35% , the current FCF yield is about 19.86% lower.

2.26

P/B

Median3y

2.35

Median5y

2.30

7.61

FCF Yield

Median3y

6.86

Median5y

6.35

Competitors Valuation Multiple

The average P/S ratio for HSTM's competitors is 6.57, providing a benchmark for relative valuation. HealthStream Inc Corp (HSTM) exhibits a P/S ratio of 2.52, which is -61.61% above the industry average. Given its robust revenue growth of 3.97%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of HSTM decreased by 8.69% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 5.82 to 7.24.

The secondary factor is the Revenue Growth, contributed 3.97%to the performance.

Overall, the performance of HSTM in the past 1 year is driven by Margin Expansion. Which is more sustainable.

3.97%

71.56M → 74.40M

Revenue Growth

24.40%

5.82 → 7.24

Margin Expansion

-37.06%

62.92 → 39.60

P/E Change

-8.69%