HealthStreamHSTM +4.01%86 PEG Ratio is 3.74 as of Jun. 28, 2026, which is 60% below its 10-year median of 9.34. GuruFocus rates HSTM with a GF Score™ of 86/100 and a GF Value™ of $30.73 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 225 Healthcare Providers & Services companies, HealthStream ranks worse than 78.22% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for HealthStream's PEG Ratio or its related term are showing as below:
HSTM'
s PEG Ratio Range Over the Past 10 Years
Min: 2.34 Med: 9.34 Max: 36.45
Current: 3.74
During the past 13 years, HealthStream's highest PEG Ratio was 36.45. The lowest was 2.34. And the median was 9.34.
HSTM's PEG Ratio is ranked worse than 78.22% of 225
companies
in the Healthcare Providers & Services industry
Industry Median: 1.37
vs HSTM: 3.74
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
HealthStream (NAS:HSTM) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
HealthStream PEG Ratio Related Terms
HealthStream PEG Ratio Historical Data
* Premium members only.
The historical data trend for HealthStream's PEG Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Health Information Services subindustry, HealthStream's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HealthStream PEG Ratio vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, HealthStream's PEG Ratio distribution charts can be found below:
* The bar in red indicates where HealthStream's PEG Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
HealthStream (HSTM) has a PEG Ratio of 3.74 as of Jun. 28, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on HealthStream and its competitors. This is 60% below median its historical median of 9.34. Over the past decade, HealthStream's PEG Ratio has ranged from 2.34 to 36.45. According to the industry distribution chart, HealthStream ranks #176 out of 225 companies in the Healthcare Providers & Services industry, placing it in the top 78.2%.
Is HealthStream's PEG Ratio too high?
HealthStream's current PEG Ratio of 3.74 is 60% below median its 10-year median of 9.34. Over the past 10 years, this metric has ranged from a low of 2.34 to a high of 36.45. The Healthcare Providers & Services industry median PEG Ratio is 1.37. HealthStream's value of 3.74 is 173% above this industry median. Based on the distribution chart, HealthStream ranks #176 out of 225 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, HealthStream has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HealthStream's PEG Ratio compare to PHR and TALK?
According to the Healthcare Providers & Services industry distribution chart, HealthStream ranks #176 out of 225 companies for PEG Ratio. This places HealthStream in the lower half of its industry. The industry median PEG Ratio is 1.37. HealthStream's value of 3.74 is 173% above this benchmark. Historically, HealthStream's own PEG Ratio has ranged from 2.34 to 36.45 over the past decade. While the company's 10-year median is 9.34 vs. the industry median of 1.37, HealthStream has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for a Healthcare Providers & Services company?
The median PEG Ratio among Healthcare Providers & Services companies is 1.37, based on 225 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HealthStream's current PEG Ratio of 3.74 is 173% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on HealthStream and its competitors. For the Healthcare Providers & Services industry, the median PEG Ratio is 1.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HealthStream's current PEG Ratio is 3.74, which is 60% below median its own 10-year median of 9.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HealthStream stock overvalued right now?
Based on GuruFocus' analysis, HealthStream (HSTM) is currently considered Modestly Undervalued. The stock's GF Value™ is $30.73, compared to a current price of $26.73 — trading 13% below its estimated fair value. The current PEG Ratio is 3.74, which is 60% below median its 10-year median of 9.34 and 173% above the Healthcare Providers & Services industry median of 1.37. HealthStream's overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For HealthStream (HSTM), the current PEG Ratio is 3.74 as of Jun. 28, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is HealthStream (HSTM) Overvalued in 2026?
Based on GuruFocus' analysis, HealthStream stock appears to be undervalued.
The current stock price of $26.73 is trading 13% below its estimated GF Value™ of $30.73.
GuruFocus considers HealthStream to be Modestly Undervalued.
Key valuation signals for HSTM:
PEG Ratio: 3.74 (60% below median its 10-year median of 9.34)
GF Value™: $30.73 vs. price of $26.73 (13% below fair value)
Industry Position: 173% above the Healthcare Providers & Services median (#176 of 225)
No single metric tells the full story. See the HSTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HealthStream Inc provides SaaS based applications for healthcare organizations all designed to improve business and clinical outcomes by supporting the people who deliver patient care. The company is focused on helping individuals and organizations in healthcare meet their ongoing learning, clinical development, credentialing, and scheduling needs. It also provides its solutions to nursing schools and nursing students.
86GF Score
Get the complete analysis for HSTM
PEG Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HSTM has been successfully added to your 
