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If you are wondering whether Planet Fitness shares still offer solid value after recent market swings, the starting point is understanding what the current price is really implying about the business.
The stock last closed at US$82.15, with returns of a 9.4% decline over 7 days, a 9.8% decline over 30 days and a 25.1% decline year to date. The 1 year return sits at an 11.2% decline and the 3 year and 5 year returns are 1.8% and 1.5% declines respectively.
Recent coverage has focused on Planet Fitness as one of the larger US gym chains, with attention on how its franchise model and membership driven revenue respond to changing consumer fitness habits. This backdrop helps frame why the share price has moved, as investors weigh membership resilience and growth prospects against the current valuation.
On our checks, Planet Fitness scores 1 out of 6 on the valuation score, which suggests only one of the six valuation checks points to the shares being undervalued. Next, we will walk through the main valuation approaches analysts use here and then finish with a broader way to think about what the market might be pricing in.
Planet Fitness scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
A DCF model estimates what a company might be worth by projecting its future cash flows and then discounting those back to today, so you can compare that value to the current share price.
For Planet Fitness, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections in US$. The latest twelve month free cash flow is about $250.1 million. Analysts have provided detailed estimates out to 2028, with Simply Wall St extrapolating further to arrive at projected free cash flow of $503 million in 2030, along with additional estimates through 2035.
Adding up those discounted cash flows and factoring in the second stage of the model produces an estimated intrinsic value of US$98.25 per share. Against the recent share price of US$82.15, this implies the stock trades at a 16.4% discount to that DCF estimate. This suggests the market price is below the modelled cash flow value.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Planet Fitness is undervalued by 16.4%. Track this in your watchlist or portfolio, or discover 46 more high quality undervalued stocks.
PLNT Discounted Cash Flow as at Mar 2026
Story Continues
For a profitable company like Planet Fitness, the P/E ratio is a useful yardstick because it links what you pay for each share directly to the earnings the business is generating today.
In general, higher growth expectations and lower perceived risk can support a higher, or “normal”, P/E ratio, while slower growth or higher risk usually call for a lower one. So the question is not whether a P/E is high or low in isolation, but whether it matches the company’s profile.
Planet Fitness currently trades on a P/E of 29.88x. That sits above the Hospitality industry average of 23.42x and the peer average of 21.17x. Simply Wall St’s Fair Ratio for Planet Fitness is 24.30x, which is its proprietary view of what the P/E “should” be after considering factors like earnings growth, profit margins, industry, market cap and company specific risks.
This Fair Ratio aims to give a cleaner signal than a simple industry or peer comparison, because it adjusts for the fact that no two businesses have the same outlook or risk profile. With the current P/E of 29.88x above the Fair Ratio of 24.30x, Planet Fitness screens as overvalued on this measure.
Result: OVERVALUED
NYSE:PLNT P/E Ratio as at Mar 2026
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Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simply your own story about a company that you connect to a set of forecast numbers and a fair value, then compare with the current share price to inform your decision making.
On Simply Wall St, Narratives live in the Community page and give you an easy way to spell out your view on Planet Fitness’s revenue, earnings and margins, tie that to a fair value estimate, and see at a glance whether your view suggests the current price looks high or low.
Because Narratives update automatically when fresh information like news or earnings is added, you do not need to rebuild your thesis every time the story moves. You can instead see how your fair value shifts relative to the live price.
For Planet Fitness, for example, one investor might anchor on a higher fair value around US$164 based on more optimistic revenue growth and margins. Another might lean toward a lower fair value near US$112. Narratives let both of those views sit side by side so you can judge which one feels closer to your own assumptions before you act.
Do you think there’s more to the story for Planet Fitness? Head over to our Community to see what others are saying!
NYSE:PLNT 1-Year Stock Price Chart
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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