If you are wondering whether Planet Fitness shares are offering fair value at around US$64.46, you are not alone. Many investors are trying to work out what that price really implies. The stock has seen pressure lately, with returns of a 10.4% decline over 7 days, a 12.7% decline over 30 days, a 41.3% decline year to date, and a 32.6% decline over the past year. This can change how the market thinks about both risk and opportunity. Recent headlines around Planet Fitness have focused on the business model, the resilience of gym memberships across different economic conditions, and how franchise structures compare with other fitness brands. This context is important because it shapes how investors interpret the sharp pullbacks and whether they reflect sentiment shifts or changes in perceived business quality. Simply Wall St’s valuation framework currently gives Planet Fitness a 2 out of 6 valuation score, which raises fair questions about where the stock stands on different valuation checks today. The sections ahead will walk through those methods before finishing with a broader way to think about what this valuation really means.
Planet Fitness scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
Approach 1: Planet Fitness Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model estimates what a business might be worth by projecting its future cash flows and then discounting those back to today’s value. For Planet Fitness, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections expressed in US$.
The latest twelve month Free Cash Flow is about $250.1 million. Analyst estimates and Simply Wall St extrapolations point to projected Free Cash Flow of $502.0 million in 2030, with a series of yearly projections between 2026 and 2035 that are discounted back to today using the DCF framework.
When all those discounted cash flows are added together, the model arrives at an estimated intrinsic value of about $92.90 per share. Compared with the recent share price of around $64.46, the DCF output suggests Planet Fitness trades at roughly a 30.6% discount, so the stock screens as undervalued on this metric alone.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Planet Fitness is undervalued by 30.6%. Track this in your watchlist or portfolio, or discover 53 more high quality undervalued stocks.
PLNT Discounted Cash Flow as at Apr 2026
Approach 2: Planet Fitness Price vs Earnings
For profitable companies, the P/E ratio is a useful shorthand for how much you are paying for each dollar of earnings. It ties the share price directly to the business’s current profit, which is usually the starting point for how the market weighs expectations and risk.
In general, higher growth expectations and lower perceived risk can justify a higher “normal” or “fair” P/E, while slower growth or higher risk often line up with a lower multiple. So the context around Planet Fitness matters when you look at its P/E in isolation.
Planet Fitness currently trades on a P/E of 23.27x. That sits a bit above the Hospitality industry average of 21.05x and is also slightly higher than the peer average of 22.67x. Simply Wall St’s Fair Ratio for Planet Fitness is 22.65x, which is a proprietary estimate of what the P/E might be given factors like earnings growth, profit margins, industry, market cap and company specific risks. This Fair Ratio can be more tailored than a simple industry or peer comparison because it tries to align the multiple with the company’s own characteristics rather than broad group averages. With the current P/E only around 0.62x above the Fair Ratio, the stock screens as slightly expensive on this metric.
Result: OVERVALUED
NYSE:PLNT P/E Ratio as at Apr 2026
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Upgrade Your Decision Making: Choose your Planet Fitness Narrative
Earlier it was mentioned that there is an even better way to understand valuation. Narratives is a simple tool on Simply Wall St’s Community page that lets you connect your story about Planet Fitness to a set of revenue, earnings and margin assumptions. It then turns those assumptions into a financial forecast and Fair Value, and compares that Fair Value with the current share price to help you judge whether the stock looks attractive or not. Each Narrative updates automatically when new earnings or news arrive. For example, a bullish Planet Fitness view might line up with a Fair Value near US$148.54, while a cautious view might sit closer to US$90.00. This clearly shows how different perspectives on the same company can lead to very different conclusions about what the shares are worth today.
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.
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