Based on the provided data and recent market performance, here's a concise analysis of whether LTH is overvalued:
Life Time Group Holdings (LTH) is currently trading at a P/E ratio of 40.45x, significantly higher than its 2022 levels, suggesting potential overvaluation from a pure earnings multiple perspective.
The company's EV/EBITDA ratio has improved from 16.82x to 9.76x in 2023, indicating better operational efficiency and more reasonable valuation from an enterprise value perspective.
The stock's technical indicators show RSI-14 at 58.39 and is trading above all major moving averages (SMA 5,10,20,60,200), suggesting strong momentum but approaching overbought territory.
Recent stellar 2024 results and optimistic 2025 guidance, including projected 75% net income growth and plans for 10-12 new centers, partially justify the current premium valuation, but the price has already risen 28.3% year-to-date, potentially limiting further upside.