Life Time Group Holdings (LTH) gave investors fresh numbers to work with after its latest quarterly update, combining higher year over year revenue and net income with slightly revised full year guidance.
Life Time Group Holdings’ latest figures have landed in a period of strong share price momentum, with a 30-day share price return of 18.25% and a year to date share price gain of 78.91%. The 1-year total shareholder return of 90.47% and 3-year total shareholder return of about 2.6x suggest longer term holders have already seen substantial gains as the market reassesses both its growth prospects and risk profile in light of earnings, updated guidance and projects like the new Life Time Living development in Raleigh.
Spot 21 high quality undiscovered gems that share Life Time Group Holdings’ mix of revenue growth, active project pipelines, and recent share price momentum.Life Time Group Holdings now has rising revenue, higher earnings and an expanding project pipeline on one side, and a share price that has surged over 70% this year on the other. Is that still a fair deal for new money?
Most Popular Narrative: 17% Undervalued
Against the last close of $47.75, the most followed narrative pegs Life Time Group Holdings’ fair value at $57.53 using a 9.67% discount rate, which leaves a sizeable gap for investors to interpret.
The expanding pipeline of new and larger Life Time Group Holdings club openings in affluent and high-density markets is now supported by guidance for 14 openings in 2026 and 12 to 14 in 2027, with management describing several recent locations reaching contribution-margin positive within a few months and reporting cash-on-cash returns above 30%, which points to further membership and revenue growth as the footprint increases.
See why 10 investors see Life Time Group Holdings as 17% undervalued.
Result: Fair Value of $57.53 (UNDERVALUED)
Still, the Life Time Group Holdings story can break if heavy 2026 CapEx and sale leasebacks squeeze cash generation, or if premium pricing starts to hit resistance.
Find out about the key risks to this Life Time Group Holdings narrative.
Another View: What Multiples Say About Life Time Group Holdings
The narrative fair value of $57.53 paints Life Time Group Holdings as 17% undervalued, yet the market’s own yardstick tells a tighter story. The stock trades on a P/E of 25.6x, above the US Hospitality average of 20.8x, its peer group at 25.1x, and a fair ratio of 21.2x. This points to a richer tag than the regression suggests. If the market leans back toward that fair ratio, how comfortable are you holding an earnings multiple that already runs hotter than sector and model benchmarks?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Mixed messages on valuation and risk can be useful, because they push you to interrogate the numbers rather than just the headlines. If you want a quick way to check both sides of the story, start with 3 key rewards and 1 important warning sign.
Looking for more investment ideas beyond Life Time Group Holdings?
If you like how Life Time Group Holdings refocused your thinking on price and risk, you will probably want a shortlist of fresh ideas to compare against.
- Target potential bargains early by scanning a curated pool of companies that screen as mispriced on quality and value using the 42 high quality undervalued stocks.
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