LifeStance Health Group (LFST) Valuation Check After Mixed Short And Long Term Share Performance

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LifeStance Health Group (LFST) has drawn investor attention after a mixed stretch, with a small gain over the past week, a decline over the past month, and a stronger move over the past 3 months.

Over 1 year, the stock shows a negative total return, while the 3 year total return figure is positive, giving investors a contrasting picture of shorter versus longer term performance.

See our latest analysis for LifeStance Health Group.

At a share price of $7.03, LifeStance Health Group shows mixed momentum, with a 12.48% 90 day share price return alongside a 1 year total shareholder return of an 11.79% loss. This hints at improving sentiment after a tougher year.

If this kind of rebound in sentiment has your attention, it could be a good moment to check out our screener of healthcare focused AI opportunities through 25 healthcare AI stocks as a way to broaden your watchlist beyond LFST.

So with LifeStance showing a recent 90 day rebound, reporting revenue and net income growth but still posting a net loss and trading below the average analyst price target, is this a genuine entry point or is the market already pricing in future growth?

At $7.03, the most followed narrative tags LifeStance Health Group with a higher fair value, using a detailed set of growth and profitability assumptions to get there.

The continued and accelerating demand for mental health services in the U.S., driven by increasing public awareness and access to insurance coverage, is expected to expand LifeStance’s addressable market and support sustained double-digit revenue growth in the coming years.

Read the complete narrative.

Want to see what is baked into that higher fair value? The narrative leans heavily on future revenue growth, rising margins and a richer earnings multiple. Curious how those pieces fit together to support the current target and fair value gap?

Result: Fair Value of $8.43 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this hinges on LifeStance managing insurer reimbursement pressure and clinician retention; any setback here could quickly challenge the current growth-focused narrative.

Find out about the key risks to this LifeStance Health Group narrative.

That 16.6% undervalued fair value of $8.43 contrasts sharply with our DCF model, which puts LifeStance Health Group closer to $4.13. At the current $7.03 share price, the cash flow view suggests the stock is trading rich, not cheap. Which story do you find more convincing?

Look into how the SWS DCF model arrives at its fair value.

If parts of this story do not sit right with you, or you would rather lean on your own research and assumptions, you can spin up a custom view and build a full narrative in just a few minutes using Do it your way.

A great starting point for your LifeStance Health Group research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

If LifeStance has sharpened your focus, do not stop here; broaden your options now so you are not relying on a single story.

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 LFST.

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