If you are wondering whether Planet Fitness shares offer good value at current levels, this article walks through what the numbers actually say about the stock. The share price closed at US$91.04, with returns of a 3.6% decline over the last 7 days, 17.0% decline over 30 days, 17.0% decline year to date, 15.8% decline over 1 year, 11.1% gain over 3 years and 17.0% gain over 5 years, which gives a mixed picture for anyone thinking about long term performance. Recent news flow around Planet Fitness has focused on broader interest in fitness stocks and ongoing investor debate about how gym memberships and brand strength should be valued. This context is important because it helps explain why the share price has moved while opinions about the business and its long term prospects continue to differ. On our checks, Planet Fitness has a valuation score of 1 out of 6, so we will look at what different valuation methods imply for the stock today and then finish with a more helpful way to think about valuation that goes beyond a single score.
Planet Fitness scores just 1/6 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 model looks at the cash Planet Fitness is expected to generate in the future and then discounts those cash flows back to today to estimate what the business might be worth right now.
On the latest figures, Planet Fitness is generating trailing twelve month Free Cash Flow of about US$195.9 million. Using a 2 Stage Free Cash Flow to Equity model, analysts and extrapolated estimates point to Free Cash Flow reaching around US$497.0 million by 2030, with a path of projected cash flows between 2026 and 2035 that are discounted back to today.
When all of those projected cash flows are added up and discounted, the model arrives at an estimated intrinsic value of about US$90.94 per share. Compared with the recent share price of US$91.04, the DCF output suggests Planet Fitness is around 0.1% overvalued. This effectively indicates that the shares are trading very close to the modelled estimate of fair value.
Result: ABOUT RIGHT
Planet Fitness is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment’s notice. Track the value in your watchlist or portfolio and be alerted on when to act.
PLNT Discounted Cash Flow as at Feb 2026
Approach 2: Planet Fitness Price vs Earnings
For a profitable company like Planet Fitness, the P/E ratio is a common way to think about what you are paying for each dollar of earnings. A higher P/E can reflect stronger earnings growth expectations or lower perceived risk, while a lower P/E can reflect weaker growth expectations or higher perceived risk.
Planet Fitness currently trades on a P/E of about 36.7x. That is above the Hospitality industry average of around 21.2x and also above a peer group average of about 16.7x, which suggests investors are paying a higher price for its earnings than for many similar companies.
Simply Wall St’s Fair Ratio for Planet Fitness is 23.9x. This is a proprietary estimate of what the P/E might reasonably be, given factors such as the company’s earnings profile, its industry, profit margin, market cap and specific risks. Because it is tailored to the company, the Fair Ratio can be more informative than a simple comparison with peers or the broad industry, which may have very different growth, risk and profitability characteristics.
Comparing the Fair Ratio of 23.9x with the current P/E of 36.7x suggests the shares are trading above this company specific reference point.
Result: OVERVALUED
NYSE:PLNT P/E Ratio as at Feb 2026
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Upgrade Your Decision Making: Choose your Planet Fitness Narrative
Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, a simple way to connect the story you believe about Planet Fitness with the numbers behind it.
A Narrative is your own clear story about the company, backed by your assumptions for fair value, future revenue, earnings and profit margins. This way you are not just looking at a P/E in isolation, but at a full picture that makes sense to you.
On Simply Wall St, Narratives live in the Community page, where millions of investors can link a company story to a financial forecast and then to a fair value, see how that compares to the current share price, and use that gap to help decide whether they think it is a good time to buy, hold or sell.
These Narratives update automatically when new data, news or earnings are released, so your view of Planet Fitness can adjust in real time, whether you lean toward a more cautious fair value or a more optimistic one that reflects a stronger long term view of the business.
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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