Let’s talk about the numbers for a second, because that’s what everyone is buzzing about. The hims stock price shot up nearly 40% in a month. Analyses like Evaluating Hims & Hers Health (HIMS) Valuation After 39% Share Price Surge in the Past Month claim the company is still somehow 32.8% undervalued. It’s the kind of frenetic energy we usually see around names like nvda stock or tsla stock after a breakthrough announcement.
But if you’re only looking at the ticker, you’re missing the entire story.
When I first dug into the Hims & Hers business model a few years ago, I honestly just sat back in my chair, speechless. It wasn't the stock I was interested in; it was the sheer, beautiful audacity of the architecture. Most people see a telehealth company selling lifestyle products. I see a group of engineers and doctors building a new operating system for personal healthcare, from the ground up. And that, my friends, is a signal so powerful it transcends any daily stock chart.
What we’re witnessing isn’t just a company hitting its stride. We’re watching the beta test for the future of medicine, and it’s happening right out in the open.
The End of Healthcare's Dial-Up Era
For decades, the American healthcare system has felt like a machine designed by a committee that never met. It’s a tangled mess of billing codes, gatekeepers, insurance pre-authorizations, and fax machines—yes, fax machines—in the age of AI. It’s like trying to stream a 4K movie over a 14.4k dial-up modem. The infrastructure is fundamentally broken.
Hims & Hers didn’t try to fix that modem. They’re laying down fiber optic cable directly to your house.
Their model is built on a concept called vertical integration—in simpler terms, it means they control the entire process. Imagine you have an issue. You open their app, consult with a doctor, get a diagnosis, receive a prescription, and have the treatment shipped to your door, all from a single, seamless platform. There’s no insurance company to say "no," no scheduling a dozen different appointments, no driving to a pharmacy. It’s a closed-loop system designed around one thing: you.
This is the kind of breakthrough that reminds me why I got into this field in the first place. It’s a paradigm shift. This is the difference between Blockbuster Video and Netflix. One required you to conform to its inconvenient, rigid system. The other rebuilt the entire system around your couch. So, let me ask you: what happens to an entire industry when getting world-class care becomes as frictionless and intuitive as ordering a pizza?
Why "Overvalued" Is the Wrong Word
Now, let’s talk about that P/E ratio. At 67.6x, it’s miles above the healthcare industry average. The skeptics will point to this number, shake their heads, and call it a bubble. They’ll say it’s disconnected from reality. And they would be right, if Hims were just another healthcare company.
But it’s not. It’s a technology company that does healthcare.
Judging Hims by the metrics of a legacy company like UNH is like judging the first automobile by the standards of a horse-and-buggy. You can’t measure a rocket ship by its horsepower. We’ve seen this movie before with other disruptors. People screamed that the tsla stock price was absurd while it was building a new energy and transportation ecosystem. They questioned the valuations of platform companies like PLTR or Sofi because they didn’t fit into neat, pre-defined boxes.
The market is finally starting to see Hims not as a company with a high P/E but as a platform with a nearly limitless addressable market and a direct, trusted relationship with its customers, and that’s why you're seeing this sudden, violent re-rating of the hims stock price—it’s the collective realization that this isn't just a niche service, it’s a foundational piece of a new health-tech stack.
Of course, with this kind of disruption comes immense responsibility. The company operates in a regulatory minefield, and any misstep, particularly around its compounding practices, could invite intense scrutiny. Pioneering a new frontier means you have to be more careful, more transparent, and more rigorous than the old guard. Can they maintain that discipline as they scale? That remains the most critical open question.
This Is Just the Beginning
What we’re seeing with Hims & Hers isn’t the destination; it’s the launchpad. The current focus on lifestyle treatments is just proof of concept. The real magic, the true scale of this vision, emerges when you start to imagine this vertically integrated platform applied to more complex and chronic conditions. Think about diabetes management, heart health, mental wellness, all delivered through a single, intelligent, and deeply personal interface.
This isn't about one company's stock. It's about a fundamental shift in our relationship with our own health. We are moving from a paternalistic, bureaucratic system to one of empowerment and direct access. The ticker symbol is just a shadow on the cave wall; the reality is the brilliant, human-centered system being built, one patient at a time. This is a bet on a future where you are the CEO of your own health, and that’s a future I’m incredibly excited to see unfold.