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Planet Fitness (PLNT) has drawn attention after a weak run in the stock, with negative returns over the month, past 3 months and year to date, prompting investors to reassess how the business fundamentals stack up.
See our latest analysis for Planet Fitness.
At a latest share price of US$88.66, Planet Fitness has seen momentum fade recently, with a 10.55% 1 month share price decline and a 19.20% year to date share price decline. However, the 3 year total shareholder return of 10.45% and 5 year total shareholder return of 11.14% point to a more resilient longer term picture.
If the recent weakness in fitness stocks has you looking wider, it could be a good moment to broaden your search with our 23 top founder-led companies.
With the share price lagging recent fundamentals and the stock sitting at a discount to some valuation estimates, you have to ask yourself: is Planet Fitness now trading below its worth, or is the market already baking in future growth?
Compared to the last close at $88.66, the most followed narrative sees fair value at about $130, framing Planet Fitness as materially undervalued on long term potential.
Ongoing format optimization, with more strength equipment, redesigned layouts, and attention to user preference, is increasing club utilization and member satisfaction. This may improve retention and provide opportunities for pricing power, positively impacting both revenue and net margins.
Curious what kind of revenue mix and margin profile this narrative is baking in? The fair value hinges on compounding earnings, firm profit margins, and a future earnings multiple that assumes Planet Fitness keeps scaling its asset light model efficiently.
Result: Fair Value of $130.41 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, you also need to weigh up risks such as higher member attrition from easier online cancellations, as well as potential pressure on club economics if franchisee growth slows.
Find out about the key risks to this Planet Fitness narrative.
While the narrative and DCF work suggest Planet Fitness is undervalued by about 6%, the P/E story is less forgiving. At 35.7x earnings, the stock sits well above the US Hospitality average of 21.7x, the peer average of 16.6x, and an SWS fair ratio of 23.9x. If the market eventually leans closer to that fair ratio, today’s price could carry more valuation risk than the DCF alone implies. Which signal do you trust more?
See what the numbers say about this price — find out in our valuation breakdown.
NYSE:PLNT P/E Ratio as at Feb 2026
If you look at the numbers and come to a different conclusion, that is fine. You can test your own assumptions and build a custom view in under 3 minutes, then Do it your way
A great starting point for your Planet Fitness research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
If Planet Fitness has sharpened your thinking, do not stop here. Broaden your watchlist with other ideas that match the kind of portfolio you want to build.
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.
Companies discussed in this article include PLNT.
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