HealthStream, Inc. (HSTM) P/E Ratio History
UndervaluedTrading at 42.0x vs 5Y avg 65.8x · 20th percentile · Below historical baseline · Data 2005–2026
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P/E Ratio Analysis
As of June 21, 2026, HealthStream, Inc. (HSTM) trades at a price-to-earnings ratio of 42.0x, with a stock price of $25.64 and trailing twelve-month earnings per share of $0.68.
The current P/E is 36% below its 5-year average of 65.8x. Over the past five years, HSTM's P/E has ranged from a low of 31.1x to a high of 138.7x, placing the current valuation at the 20th percentile of its historical range.
Compared to the Healthcare sector median P/E of 22.1x, HSTM trades at a 90% premium to its sector peers. The sector includes 234 companies with P/E ratios ranging from 0.0x to 197.0x.
The PEG ratio of 6.23 (P/E divided by -8% EPS growth) suggests the stock may be expensive relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, HSTM commands a significant premium over the S&P 500 median P/E of 24.4x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our HSTM DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
HSTM Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
HSTM P/E vs Peers
Healthcare Communications, Workforce and Supply Chain peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $922M | 31.2 | - | +104% | |
| $25B | 28.2 | 1.55 | +26% | |
| $4B | 20.9 | 0.40Best | -12% | |
| $2B | 6.8Lowest | 0.66 | +817%Best | |
| $3B | 53.6 | - | +225% | |
| $7B | 15.5 | 0.58 | -9% | |
| $84B | 13.2 | 0.63 | +29% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
HSTM Historical P/E Data (2005–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q1 | - | $20.71 | $0.67 | 31.1x | -55% |
| FY2025 Q4 | Dec 31 2025 | $23.07 | $0.61 | 38.1x | -45% |
| FY2025 Q3 | - | $28.24 | $0.68 | 41.5x | -40% |
| FY2025 Q2 | Jun 30 2025 | $27.67 | $0.67 | 41.3x | -41% |
| FY2025 Q1 | Mar 31 2025 | $32.18 | $0.63 | 51.1x | -27% |
| FY2024 Q4 | - | $31.80 | $0.66 | 48.2x | -31% |
| FY2024 Q3 | Sep 30 2024 | $28.84 | $0.65 | 44.4x | -36% |
| FY2024 Q2 | Jun 30 2024 | $27.90 | $0.59 | 47.3x | -32% |
| FY2024 Q1 | Mar 31 2024 | $26.66 | $0.58 | 46.0x | -34% |
| FY2023 Q4 | Dec 31 2023 | $27.03 | $0.50 | 54.1x | -22% |
| FY2023 Q3 | Sep 30 2023 | $21.58 | $0.43 | 50.2x | -28% |
| FY2023 Q2 | Jun 30 2023 | $24.56 | $0.42 | 58.5x | -16% |
| FY2023 Q1 | Mar 31 2023 | $27.10 | $0.39 | 69.5x | -0% |
| FY2022 Q4 | Dec 31 2022 | $24.84 | $0.39 | 63.7x | -9% |
| FY2022 Q3 | Sep 30 2022 | $21.26 | $0.30 | 70.9x | +2% |
| FY2022 Q2 | - | $21.71 | $0.23 | 94.4x | +36% |
| FY2022 Q1 | - | $19.92 | $0.21 | 94.9x | +36% |
| FY2021 Q4 | Dec 31 2021 | $26.36 | $0.19 | 138.7x | +99% |
| FY2021 Q3 | - | $28.58 | $0.23 | 124.3x | +78% |
| FY2021 Q2 | Jun 30 2021 | $27.94 | $0.26 | 107.5x | +54% |
| FY2021 Q1 | Mar 31 2021 | $22.34 | $0.29 | 77.0x | +11% |
| FY2020 Q4 | - | $21.84 | $0.44 | 49.6x | -29% |
| FY2020 Q3 | Sep 30 2020 | $20.07 | $0.52 | 38.6x | -45% |
| FY2020 Q2 | - | $22.13 | $0.55 | 40.2x | -42% |
| FY2020 Q1 | - | $23.95 | $0.51 | 47.0x | -33% |
| FY2019 Q4 | - | $27.20 | $0.47 | 57.9x | -17% |
| FY2019 Q3 | Sep 30 2019 | $25.89 | $0.45 | 57.5x | -17% |
| FY2019 Q2 | Jun 30 2019 | $25.86 | $0.43 | 60.1x | -14% |
| FY2019 Q1 | Mar 31 2019 | $28.06 | $0.44 | 63.8x | -8% |
| FY2018 Q4 | Dec 31 2018 | $24.15 | $1.00 | 24.1x | -65% |
| FY2018 Q3 | Sep 30 2018 | $31.01 | $1.03 | 30.1x | -57% |
| FY2018 Q2 | Jun 30 2018 | $27.31 | $1.02 | 26.8x | -62% |
| FY2018 Q1 | Mar 31 2018 | $24.83 | $1.01 | 24.6x | -65% |
| FY2017 Q4 | Dec 31 2017 | $23.16 | $0.31 | 74.7x | +7% |
| FY2017 Q3 | Sep 30 2017 | $23.37 | $0.18 | 129.7x | +86% |
| FY2017 Q2 | Jun 30 2017 | $26.32 | $0.14 | 187.7x | +170% |
| FY2017 Q1 | Mar 31 2017 | $24.23 | $0.11 | 219.9x | +216% |
| FY2016 Q4 | Dec 31 2016 | $25.05 | $0.12 | 208.4x | +199% |
| FY2016 Q3 | Sep 30 2016 | $27.60 | $0.19 | 145.3x | +109% |
| FY2016 Q2 | - | $26.52 | $0.23 | 115.3x | +66% |
| FY2016 Q1 | - | $22.09 | $0.24 | 92.0x | +32% |
| FY2015 Q4 | - | $22.00 | $0.29 | 75.9x | +9% |
| FY2015 Q3 | Sep 30 2015 | $21.81 | $0.32 | 68.2x | -2% |
| FY2015 Q2 | - | $30.42 | $0.36 | 84.5x | +21% |
| FY2015 Q1 | - | $25.20 | $0.39 | 64.6x | -7% |
| FY2014 Q4 | Dec 31 2014 | $29.48 | $0.36 | 81.9x | +18% |
| FY2014 Q3 | - | $24.01 | $0.33 | 72.8x | +4% |
| FY2014 Q2 | Jun 30 2014 | $24.30 | $0.29 | 83.8x | +20% |
| FY2014 Q1 | Mar 31 2014 | $26.70 | $0.30 | 89.0x | +28% |
| FY2013 Q4 | - | $32.63 | $0.30 | 108.8x | +56% |
| FY2013 Q3 | Sep 30 2013 | $37.88 | $0.31 | 122.2x | +75% |
| FY2013 Q2 | Jun 30 2013 | $25.32 | $0.30 | 84.4x | +21% |
| FY2013 Q1 | Mar 31 2013 | $22.94 | $0.30 | 76.5x | +10% |
| FY2012 Q4 | Dec 31 2012 | $24.31 | $0.28 | 86.8x | +25% |
| FY2012 Q3 | Sep 30 2012 | $28.46 | $0.28 | 102.0x | +47% |
| FY2012 Q2 | Jun 30 2012 | $26.00 | $0.29 | 90.0x | +29% |
| FY2012 Q1 | Mar 31 2012 | $23.19 | $0.28 | 83.1x | +19% |
| FY2011 Q4 | Dec 31 2011 | $18.45 | $0.30 | 61.7x | -11% |
| FY2011 Q3 | Sep 30 2011 | $12.83 | $0.29 | 45.0x | -35% |
| FY2011 Q2 | - | $13.27 | $0.25 | 54.1x | -22% |
| FY2011 Q1 | - | $7.73 | $0.23 | 34.3x | -51% |
| FY2010 Q4 | Dec 31 2010 | $8.04 | $0.20 | 41.2x | -41% |
| FY2010 Q3 | - | $5.32 | $0.62 | 8.6x | -88% |
| FY2010 Q2 | Jun 30 2010 | $4.70 | $0.63 | 7.5x | -89% |
| FY2010 Q1 | Mar 31 2010 | $4.09 | $0.65 | 6.3x | -91% |
| FY2009 Q4 | - | $3.95 | $0.65 | 6.1x | -91% |
| FY2009 Q3 | Sep 30 2009 | $4.44 | $0.24 | 18.7x | -73% |
| FY2009 Q2 | - | $2.52 | $0.22 | 11.6x | -83% |
| FY2009 Q1 | - | $2.00 | $0.17 | 11.9x | -83% |
| FY2008 Q4 | Dec 31 2008 | $2.33 | $0.13 | 17.9x | -74% |
| FY2008 Q3 | - | $2.46 | $0.19 | 12.8x | -82% |
| FY2008 Q2 | Jun 30 2008 | $2.79 | $0.19 | 14.5x | -79% |
| FY2008 Q1 | Mar 31 2008 | $2.90 | $0.18 | 15.9x | -77% |
| FY2007 Q4 | Dec 31 2007 | $3.50 | $0.18 | 19.2x | -72% |
| FY2007 Q3 | Sep 30 2007 | $2.96 | $0.10 | 29.2x | -58% |
| FY2007 Q2 | Jun 30 2007 | $3.56 | $0.09 | 39.0x | -44% |
| FY2007 Q1 | Mar 31 2007 | $4.30 | $0.08 | 53.0x | -24% |
| FY2006 Q4 | Dec 31 2006 | $3.95 | $0.11 | 36.2x | -48% |
| FY2006 Q3 | Sep 30 2006 | $3.47 | $0.12 | 29.9x | -57% |
| FY2006 Q2 | Jun 30 2006 | $3.82 | $0.12 | 32.9x | -53% |
| FY2006 Q1 | Mar 31 2006 | $3.72 | $0.11 | 34.8x | -50% |
| FY2005 Q4 | Dec 31 2005 | $2.33 | $0.09 | 26.8x | -62% |
| FY2005 Q3 | Sep 30 2005 | $2.95 | $0.03 | 85.0x | +22% |
| FY2005 Q2 | - | $3.88 | $0.01 | 636.1x | +813% |
Average P/E for displayed period: 69.6x
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Historical Returns
21+ years return with dividends reinvested.
DCA Calculator
See how regular investing compounds over time.
Peer Comparison
Compare growth, multiples, and margins vs sector.
HSTM — Frequently Asked Questions
Quick answers to the most common questions about buying HSTM stock.
What is HSTM's P/E ratio?
HealthStream, Inc. (HSTM) trailing twelve-month P/E ratio is 42.0x, based on TTM diluted EPS of $0.68. The 5-year average P/E is 65.8x and the historical range spans 31.1x to 138.7x.
Is HSTM stock overvalued or undervalued?
HSTM trades at 42.0x P/E, below its 5-year average of 65.8x. At the 20th percentile of its historical range (31.1x–138.7x), the stock is priced at a discount to its own history.
Is HSTM stock expensive?
No, HSTM is not expensive on a historical basis. The current P/E of 42.0x is below the 5-year average of 65.8x and sits at the 20th percentile of its valuation range.
What is HSTM's historical P/E range?
Over the past 5 years, HSTM's P/E ratio has ranged from 31.1x to 138.7x, with a median of 54.1x and an average of 65.8x. The current P/E of 42.0x places the stock at the 20th percentile of this range. Full historical data spans 2005–2026.
How does HSTM's P/E compare to the S&P 500?
HSTM trades at 42.0x P/E versus the S&P 500 median of 24.4x. The 72% premium to the market typically reflects higher expected earnings growth or quality.
How does HSTM's valuation compare to Healthcare peers?
HealthStream, Inc. P/E of 42.0x compares to the Healthcare sector median of 22.1x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is HSTM's PEG ratio?
HSTM PEG ratio is 6.23, based on a P/E of 42.0x and EPS growth of -7.6%. A PEG above 2.0 indicates a premium valuation relative to earnings growth — typically considered expensive.
What is HSTM's earnings yield?
HSTM earnings yield is 2.38%, the inverse of its 42.0x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.