Hims & Hers Health (HIMS) Faces FTC Lawsuit, Is The Stock Now A Bargain?

Hims & Hers Health (HIMS) is under pressure after the Federal Trade Commission filed a lawsuit on July 29, 2026, alleging improper handling of health data and billing practices, followed by a shareholder class action.

The legal headlines have landed on a stock that was already cooling off. Hims & Hers Health shares closed at US$27.51, and the 1 month share price return is down 8.21%, while the 1 year total shareholder return has declined 50.43% after a very large 3 year total shareholder return of roughly 3.4x. This suggests earlier momentum is fading as investors reassess both growth opportunities like the recent Australian expansion and new regulatory risks around data use and billing.

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Hims & Hers Health now trades at a discount to both its own estimated value and analyst targets after the legal shock. The key question is whether that gap reflects an opportunity or a fair markdown for the extra risk.

Most Popular Narrative: 83.9% Undervalued

Hims & Hers Health last closed at $27.51. The most followed narrative on the stock argues for a fair value of $171.19, using a 7% discount rate and a long runway of revenue growth and margin expansion to support that gap.

The thesis is not about one medication, one category or one quarter.

It is about a company repeatedly following the same playbook while expanding its addressable market.

More customers. More categories. More countries. More services per customer. Higher ARPU. Better operating leverage.

That is the Multi-Dimensional Growth Engine.

The combination of execution, expanding opportunity and improving economics suggests that the disconnect between Hims'' underlying growth potential and current market pricing remains substantial, both in the short and long term.

Read the complete narrative.

According to Deep_Insights, this fair value depends on a very specific mix of revenue growth, improving profitability and a future earnings multiple that is usually reserved for mature platform leaders. Curious which assumptions matter most, and how they align with today's legal and regulatory backdrop for Hims & Hers Health.

Result: Fair Value of $171.19 (UNDERVALUED)

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

Still, the Hims & Hers Health story depends on regulators easing off and on high growth assumptions holding, so tougher enforcement or slower expansion would quickly stress this narrative.

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

Next Steps

Sentiment around Hims & Hers Health is clearly split, with legal worries on one side and growth hopes on the other. Move quickly, review the evidence in detail, and weigh both the 2 key rewards and 2 important warning signs.

Looking for more Hims & Hers Health alternatives?

If Hims & Hers Health now feels like a concentrated bet, broaden your watchlist with other ideas that match your risk appetite and time horizon.

• Lock in potential compounding from sturdier businesses by scanning a list of solid balance sheet and fundamentals (23 results) that can help anchor a more resilient portfolio.
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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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