As of December 15, 2025, Planet Fitness Inc's estimated intrinsic value ranges from $37.14 to $189.33 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $189.33 | +74.3% |
| Discounted Cash Flow (5Y) | $148.41 | +36.6% |
| Dividend Discount Model (Multi-Stage) | $90.36 | -16.8% |
| Dividend Discount Model (Stable) | $117.02 | +7.7% |
| Earnings Power Value | $37.14 | -65.8% |
Is Planet Fitness Inc (PLNT) undervalued or overvalued?
With the current market price at $108.61, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Planet Fitness Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.49 | 0.64 |
| Cost of equity | 6.1% | 8.4% |
| Cost of debt | 4.4% | 6.1% |
| Tax rate | 21.0% | 27.9% |
| Debt/Equity ratio | 0.24 | 0.24 |
| After-tax WACC | 5.6% | 7.6% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $148 | $14,192M | 89.9% |
| 10-Year Growth | $189 | $17,601M | 80.9% |
| 5-Year EBITDA | $53 | $6,285M | 77.2% |
| 10-Year EBITDA | $82 | $8,694M | 61.3% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $318M |
| Discount Rate (WACC) | 7.6% - 5.6% |
| Enterprise Value | $4,159M - $5,688M |
| Net Debt | $1,829M |
| Equity Value | $2,329M - $3,859M |
| Outstanding Shares | 83M |
| Fair Value | $28 - $46 |
| Selected Fair Value | $37.14 |
| Metric | Value |
|---|---|
| Market Capitalization | $9047M |
| Enterprise Value | $10877M |
| Trailing P/E | 43.96 |
| Forward P/E | 40.80 |
| Trailing EV/EBITDA | 8.55 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.24 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $56.80 |
| Discounted Cash Flow (5Y) | 25% | $37.10 |
| Dividend Discount Model (Multi-Stage) | 20% | $18.07 |
| Dividend Discount Model (Stable) | 15% | $17.55 |
| Earnings Power Value | 10% | $3.71 |
| Weighted Average | 100% | $133.24 |
Based on our comprehensive valuation analysis, Planet Fitness Inc's intrinsic value is $133.24, which is approximately 22.7% above the current market price of $108.61.
Key investment considerations:
Given these factors, we believe Planet Fitness Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.