A Look At Planet Fitness (PLNT) Valuation After Strong 2025 Membership And Club Growth Updates

Planet Fitness (PLNT) drew investor attention after releasing year-end 2025 updates, highlighting membership of about 20.8 million, 181 new club openings, and a 6.7% rise in system-wide same-club sales. See our latest analysis for Planet Fitness. The latest membership and club rollout update comes after a mixed year for the stock, with a 90 day share price return of 6.19% but a 1 year total shareholder return decline of 0.95%. This suggests momentum has recently cooled despite longer term gains over three and five years. If Planet Fitness’s update has you reassessing your watchlist, it could be a good moment to broaden your search and check out fast growing stocks with high insider ownership. With membership at about 20.8 million, 2,896 clubs, revenue of US$1.2b and net income of roughly US$205.8m, plus a share price near US$100, is Planet Fitness still undervalued, or is the market already pricing in future growth? Most Popular Narrative: 22.9% Undervalued With Planet Fitness closing at US$100.59 versus a narrative fair value of US$130.41, the most widely followed view leans toward a higher long term worth for the business at its current scale and earnings profile. Analysts are assuming Planet Fitness's revenue will grow by 11.6% annually over the next 3 years. Analysts assume that profit margins will increase from 16.2% today to 19.3% in 3 years time. Read the complete narrative. Want to see what sits behind that higher fair value line? The narrative leans on rising profitability, faster top line growth and a premium earnings multiple usually reserved for market leaders. Curious which specific revenue and margin paths have been stitched together to justify that view, and how rich the future P/E input really is compared to the wider industry? Result: Fair Value of $130.41 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this upbeat narrative could be challenged if higher member attrition from click to cancel, along with slower franchise expansion, weakens recurring revenue and pressures margins. Find out about the key risks to this Planet Fitness narrative. Another View: Rich Earnings Multiple Raises Questions That 22.9% undervalued narrative sits against a much tougher picture on the current earnings multiple. Planet Fitness trades on a P/E of 40.6x, versus 22.2x for the US Hospitality industry and a peer average of 48.2x, while our fair ratio sits closer to 24x. In practice, that gap means you are paying a higher price today for each dollar of earnings than the wider industry and well above where the fair ratio suggests the market could settle. This raises the question: are you comfortable paying up on the assumption the upbeat growth story plays out as hoped? See what the numbers say about this price — find out in our valuation breakdown. NYSE:PLNT P/E Ratio as at Jan 2026 Build Your Own Planet Fitness Narrative If you see the numbers differently or prefer to piece together your own view from the ground up, you can build a custom thesis in minutes with Do it your way. A great starting point for your Planet Fitness research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Ready for more stock ideas worth your time? If Planet Fitness has sharpened your thinking, do not stop here. Broaden your watchlist now so you are not late to the next opportunity. Spot potential mispricings early by checking out these 881 undervalued stocks based on cash flows that could line up with your return expectations and risk tolerance. Tap into digital assets themes through these 79 cryptocurrency and blockchain stocks and see which listed businesses are tied to cryptocurrencies and blockchain infrastructure. Target higher income opportunities by scanning these 12 dividend stocks with yields > 3% that already meet a yield threshold above 3%. 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.