<div id="readability-page-1"><div><p>LifeStance Health Group (LFST) shares climbed after the company announced better profitability and a full-year Adjusted EBITDA forecast above Wall Street expectations. This was further supported by encouraging comments on interest rates from the New York Federal Reserve President.</p> <p>See our latest analysis for LifeStance Health Group.</p> <p>LifeStance Health Group’s shares have rebounded sharply, jumping over 23% in the past month as optimism about profitability and interest rates fueled momentum. While shareholders have seen a 3-year total return of nearly 36%, the recent 1-year total shareholder return lags at -15%. This highlights a recovery that is still gaining its footing but shows signs of renewed interest around future growth.</p> <p>If today's momentum in healthcare stocks caught your attention, this could be the perfect moment to discover new contenders through our See the full list for free.</p> <p>The share price has rebounded; however, with mixed earnings guidance and ongoing market optimism, investors are left wondering whether LifeStance Health Group is genuinely undervalued or if the latest gains already reflect future growth potential.</p> <h2>Most Popular Narrative: 23.6% Undervalued</h2> <p> LifeStance Health Group’s latest closing price sits below the narrative’s fair value estimate, signaling possible upside ahead if growth assumptions are realized. The narrative highlights a rapid expansion story and sets the stage for a potentially transformative few years. </p> <blockquote> <p> &#34;Investments in AI and digital technology platforms (such as automated revenue cycle tools, patient engagement systems, and enhanced care matching) are expected to drive operating leverage, reduce administrative costs, and improve clinician productivity. These changes may result in higher net margins and increased earnings over the longer term.&#34; </p> </blockquote> <p>Read the complete narrative.</p> <p> Want to know what powers these big valuation calls? Discover the pivotal growth drivers, margin forecasts, and one surprising financial leap behind this bullish outlook. The full narrative connects all the dots—find the assumptions driving this potential turnaround. </p> <p><strong>Result: Fair Value of $8.43 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, intensifying competition and ongoing reimbursement pressure could limit LifeStance’s growth potential if industry dynamics shift unexpectedly in the coming years.</p> <p>Find out about the key risks to this LifeStance Health Group narrative.</p> <h2>Another View: What Do Multiples Say?</h2> <p>Looking beyond future cash flow assumptions, LifeStance Health Group trades on a Price-to-Sales ratio of 1.8x, noticeably higher than both peers and the broader healthcare industry average of 1.3x. Compared to the fair ratio, also at 1.3x, the current valuation appears rich and raises questions about upside risks if market expectations shift. Are investors paying too much for anticipated growth, or does a premium reflect the company’s unique prospects?</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/e421b528-b565-4b30-a932-6e525e138818/chart/ps-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/e421b528-b565-4b30-a932-6e525e138818/chart/ps-multiple-vs-industry"/><figcaption>NasdaqGS:LFST PS Ratio as at Nov 2025</figcaption></figure><h2> Build Your Own LifeStance Health Group Narrative</h2> <p>If you want to dig deeper or see things from a different angle, you can shape your own LifeStance Health Group story in just a few minutes. Do it your way</p> <p>A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding LifeStance Health Group.</p> <h2>Looking for More Investment Ideas?</h2> <p>Capitalize on emerging opportunities by handpicking stocks tailored to your strategy. Gain the edge you need with these powerful, easy-to-use screeners.</p> <ul> <li>Unlock rapid growth potential by seizing the momentum in tech with these 26 AI penny stocks.</li> <li>Capture resilient income streams by targeting market leaders that pay attractive yields through these 15 dividend stocks with yields &gt; 3%.</li> <li>Position yourself at the forefront of innovation by tapping into breakthroughs in cryptographic security with these 81 cryptocurrency and blockchain stocks.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

LFST

<p>LifeStance Health Group's shares rose after announcing better profitability and an optimistic EBITDA forecast. The stock rebounded 23% in a month, driven by interest rate optimism. Despite a 3-year return of 36%, the 1-year return is -15%. The company is seen as 23.6% undervalued, with a fair value of $8.43. Investments in AI and digital platforms are expected to boost margins. However, competition and reimbursement pressures pose risks. The Price-to-Sales ratio is higher than industry averages, raising valuation concerns.</p>

A Look at LifeStance Health Group's (LFST) Valuation Following Upbeat Profitability and Guidance Shift