A Look At Life Time Group Holdings (LTH) Valuation After Recent Choppy Share Performance

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Recent share performance and business snapshot

Life Time Group Holdings (LTH) has drawn attention after recent trading, with the stock last closing at US$32.07 and showing mixed short term moves alongside gains over the past month and past 3 months.

The company runs large full service health, fitness, and wellness clubs across the United States and Canada, supported by a digital platform that offers live classes, coaching, and health focused content for members.

See our latest analysis for Life Time Group Holdings.

Recent trading has been choppy, with the share price down 2.67% over the last day and 4.95% over the past week, yet still showing a 20.16% year to date share price return and a 58.61% total shareholder return over three years. This points to momentum that has cooled slightly in the very short term but remains positive over a longer horizon.

If you are comparing Life Time Group Holdings with other opportunities in the market, this could be a good moment to broaden your watchlist with 20 top founder-led companies

With Life Time Group Holdings posting a 20.16% year to date return and trading at a 26.73% discount to the average analyst price target, the key question is whether the stock is genuinely undervalued or whether the market has already priced in future growth.

Most Popular Narrative: 19.8% Undervalued

With Life Time Group Holdings last closing at $32.07 against a most followed fair value of $40.00, the current price sits well below that narrative anchor and puts the focus firmly on what is baked into those assumptions.

The expanding pipeline of new and larger club openings in affluent and high-density markets positions Life Time for sustained membership and top-line revenue growth, benefiting from the growing consumer demand for premium health, wellness, and lifestyle experiences. Accelerating growth in ancillary, higher-margin services including personal training, Life Time Digital offerings, nutritional supplements, and health or wellness programs supports increased average revenue per member and improved net margins as consumer expectations shift toward holistic wellness.

Read the complete narrative.

Curious what underpins that fair value gap? The narrative leans on steady revenue expansion, resilient margins, and a future earnings multiple that is higher than today. The real interest lies in how those pieces fit together.

Result: Fair Value of $40.00 (UNDERVALUED)

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

Story Continues

However, this hinges on heavy capital needs for new clubs and premium pricing, which could pressure margins and membership if financing tightens or if discretionary spending weakens.

Find out about the key risks to this Life Time Group Holdings narrative.

Another way to look at value

Analysts see Life Time Group Holdings as undervalued relative to their $40.00 fair value narrative, but the P/E picture is more restrained. The stock trades on 18.5x earnings, slightly below the US market at 18.6x, below peers at 22.1x, and below a fair ratio of 19.2x. That points to a modest valuation gap rather than a clear-cut bargain. How comfortable are you with that margin of safety?

See what the numbers say about this price — find out in our valuation breakdown.NYSE:LTH P/E Ratio as at May 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Life Time Group Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With mixed signals on value, risk, and momentum, this is a moment to look closely at the underlying data and draw your own line in the sand. To weigh the concerns against the potential upsides and decide where you stand, start by reviewing the 5 key rewards and 3 important warning signs.

Looking for more investment ideas?

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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 LTH.

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