HealthStream Inc (HSTM) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of HealthStream Inc stock $23.90, price $28.89, that is 17.3% below the price, quality 73 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $18.68 – $35.16 · fair‑value band $18.26 – $29.52 · the $28.89 price screens above the $23.90 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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HealthStream, Inc. provides Software-as-a-Service (SaaS) based applications for healthcare organizations in the United States.
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The company offers hStream, a technology platform; CredentialStream, provides healthcare organizations with tools to support the provider lifecycle management from recruiting, application submission, verification of licensure and other credentials, privileging, appointments by credentialing committees, enrollment, network, management, onboarding, and performance evaluations of providers; ShiftWizard; and Competency Suite, AI/ML-driven clinical competency development system.
It also provides applications for performance appraisal, competency management, disclosure management, clinical competency, assessment, development, simulation-based education, clinical rotation and onboarding management, quality management, and industry training.
The company's solutions help healthcare organizations in meeting their ongoing learning, clinical development, credentialing, and scheduling needs.
It serves the healthcare industry, including private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies, and nursing schools and students. The company was incorporated in 1990 and is headquartered in Nashville, Tennessee.
Stock analysis
HealthStream Inc (HSTM) currently trades at $28.89, while our model-based Fair Value estimate is $23.90, 17% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $28.60 per share, and 5 of the 26 models we run sit above the $28.89 price.
Bear case: the Earnings-Based group reads lowest at $6.28, and 21 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $18.26 (bear) to $29.52 (bull), the price of $28.89 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 73/100 (solid quality), in the Healthcare sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
HealthStream Inc reported revenue of $304M in FY2025 versus $257M in FY2021, a compound +4.3%/yr. Reported net income was $18.3M in FY2025, compounding +33.1%/yr from FY2021.
Key figures
Market cap $862M Small · P/E ratio 41.3 · P/S ratio 2.68 · EPS (TTM) $0.7000 · Dividend yield 0.5% · Net margin 6.6% · Return on equity 6.0% · Return on assets (EBIT) 3.1% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 45 out of 100 (medium confidence).
What moves the price
The share trades about 18% below its 52-week high and 46% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at 3% fair-value upside, at −17%, HSTM screens richer than that median.
Fair Value models
Bear$18.26Fair Value $23.90Bull$29.52
Price $28.89 · Downside -17.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.4871 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 6 officers or directors sold shares worth $6.2M and none bought.
SaleMichael Manning CollierExecutive Vice President21,300 shares at $29.97$638,334Nov 5, 2026
SaleScott Alexander RobertsCFO and SVP9,500 shares at $32.26$306,484Nov 5, 2026
SaleTate Deborah TaylorDirector2× since Nov 26, 2025: 4,861 shares, avg. $30.00$145,849Nov 5, 2026
SaleKevin P O'HaraExecutive Vice President3× since Dec 8, 2025: 9,000 shares, avg. $27.24$245,197Nov 5, 2026
SaleLinda RebrovickDirector4× since May 28, 2026: 22,000 shares, avg. $31.55$694,000Oct 23, 202610b5-1 plan
SaleRobert A Frist JrCEO and Chairman, Director, 10% owner144,068 shares at $29.50$4.3MSep 14, 2026
SaleJeff CunninghamChief Technology Officer2,100 shares at $24.09$50,589Dec 10, 2025
Plus 26 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.67/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+4.3%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.4%
Start year 2020 (pandemic). Over 10 years: +3.8% a year
Revenue growth 26 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+20.1%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+7.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+6.7%
Dividend (yield on the price)0.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.6.7% vs 7.9%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.7% → 7%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+2.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −0.1% a year for the price and +2.5% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Health Information Services · 117 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score73 · Top 25%
Fair Value upside−17.3% · Above median
Profitability
Return on equity (12 months)6.0% · Above median
Return on assets3.5% · Above median
Net margin (12 months)6.6% · Above median
Operating margin (12 months)9.9% · Above median
Growth and dividend
Revenue growth (quarter YoY)12.5% · Above median
Dividend yield (12 months)0.5% · Bottom 25%
Valuation Multiplesvs Health Information Services median · lower = cheaper
P/E (12 months)41.3× · Pricier than median
P/B2.43× · Pricier than median
P/S (12 months)2.68× · Pricier than median
Price / free cash flow (fiscal year)14.5× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "HealthStream Inc Fair Value". https://www.fairvalue-calculator.com/stock/HSTM
Frequently asked questions
Is HealthStream Inc (HSTM) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $23.90 versus a price of $28.89, about 17% lower (overvalued).
What is the fair value of HSTM?
Our model-based fair value for HealthStream Inc is $23.90 (as of Nov 4, 2026), built from audited fundamentals. The current price: $28.89.
What is the quality score of HSTM?
HealthStream Inc has a Quality Score of 73/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for HealthStream Inc (HSTM)?
Our model-based price target is the fair value of $23.90 (as of Nov 4, 2026) from 26 valuation models. Cautious scenario $18.26, optimistic scenario $29.52. It is a calculation from audited fundamentals, not an analyst target.
What is the HealthStream Inc stock forecast for 2026?
Our models put fair value at $23.90, about 17% lower versus a price of $28.89 (overvalued). Cautious scenario $18.26, optimistic scenario $29.52. The calculation is refreshed regularly with new filings.
What is the revenue of HealthStream Inc (HSTM)?
HealthStream Inc reported trailing-twelve-month revenue of about $321M (latest available figure, as of Nov 4, 2026).
Does HealthStream Inc pay a dividend?
HealthStream Inc currently shows a dividend yield of 0.46% relative to its recent price (as of Nov 4, 2026).
How much is the dividend of HealthStream Inc (HSTM) and when is the ex-dividend date?
HealthStream Inc pays a dividend of $0.132 per share a year, a dividend yield of 0.5%. The last ex-dividend date was Aug 17, 2026. The payout ratio is 18.9% of earnings. Free cash flow covers the dividend 14.77 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into HealthStream Inc (HSTM)?
For today's price to be fair in a discounted-cash-flow model, HealthStream Inc would have to grow free cash flow by +2.3 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.4 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of HSTM use?
Our models discount HealthStream Inc at 9.8 %: a base by market capitalisation (small), damped by beta 0.43, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For HealthStream Inc that is +2.3 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has HealthStream Inc (HSTM) delivered so far?
Over the past 5 years revenue at HealthStream Inc grew +4.4 % a year. The price currently implies free-cash-flow growth of +2.3 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of HealthStream Inc (HSTM) growing?
The median revenue growth in the sector is +6.2 % a year. That is the yardstick for the growth priced into HealthStream Inc (+2.3 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of HealthStream Inc (HSTM)?
The free-cash-flow yield on the price is 7.03 %: that much free cash flow HealthStream Inc produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of HealthStream Inc (HSTM)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For HealthStream Inc it is $23.90 per share (as of Nov 4, 2026), against a price of $28.89. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is HealthStream Inc stock overvalued or undervalued in 2026?
As of Nov 4, 2026, HSTM trades above its calculated fair value: price $28.89, fair value $23.90, a gap of about −17% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HSTM?
No. The price is what the market pays today ($28.89); the fair value is what the company's own numbers justify ($23.90). For HealthStream Inc the two are $4.99 per share apart. That gap is exactly why we show both numbers side by side.
How much is HealthStream Inc worth?
The market values HealthStream Inc at about $862M (market capitalisation, as of Nov 4, 2026). Per share that is $28.89; our models calculate a fair value of $23.90 per share.
What do the bullish and bearish scenarios say about HSTM?
Our models span a range for HealthStream Inc: cautious scenario $18.26, base $23.90, optimistic $29.52 per share (as of Nov 4, 2026, price $28.89). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HSTM?
HealthStream Inc trades at a price-to-earnings ratio of 41.3 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $23.90 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 55.2. Other multiples: PEG 3.4, P/B 2.4, P/S 2.7, EV/EBITDA 18.4.
What is the PEG ratio of HSTM?
The PEG ratio of HealthStream Inc is 3.39 (P/E divided by earnings growth, as of Nov 4, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of HealthStream Inc (HSTM)?
Balance-sheet figures for HealthStream Inc (as of Nov 4, 2026): return on equity 6.0%. They feed the Quality Score of 73/100, which measures business quality independently of the share price.
How far is HSTM from its 52-week high?
HealthStream Inc trades at $28.89, about 18% below its 52-week high of $35.16 and 46% above the low of $19.82 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $23.90 is for.
Which stocks are comparable to HealthStream Inc?
From the same area (Healthcare) we also value Veeva Systems Inc, Pro Medicus Limited, BrightSpring Health Services, Inc, Hinge Health, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is HealthStream Inc stock attractive at the current price?
The data as of Nov 4, 2026: price $28.89, calculated fair value $23.90 (−17%), Quality Score 73/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HSTM calculated?
We run HealthStream Inc through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $23.90 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. HealthStream Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of HealthStream Inc (HSTM)?
The closing price on Nov 6, 2026 was $28.89. Our model-based fair value is $23.90, about 17% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with HealthStream Inc right now?
Solid but not exceptional quality (73/100) and above fair value, neither a clear bargain nor a standout compounder. The price sits in the upper half of our model range, so the margin of safety is thin. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of HealthStream Inc (HSTM) come from?
Earnings per share at HealthStream Inc grew +9.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +4.1 %, EBIT margin +1.3 %, tax rate +2.8 %, residual (interest, one-offs) +1.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of HealthStream Inc
How large is the market capitalisation of HealthStream Inc (HSTM)?
The market capitalisation of HealthStream Inc is $862M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of HealthStream Inc (HSTM)?
The price-to-sales ratio of HealthStream Inc is 2.68 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of HealthStream Inc (HSTM)?
Earnings per share at HealthStream Inc are $0.7000 (price ÷ EPS = P/E 41.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of HealthStream Inc (HSTM)?
The dividend yield of HealthStream Inc is 0.5% (payout 18.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of HealthStream Inc (HSTM)?
The net margin of HealthStream Inc is 6.6% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of HealthStream Inc (HSTM)?
The return on equity (ROE) of HealthStream Inc is 6.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of HealthStream Inc (HSTM)?
On an EBIT basis the return on assets of HealthStream Inc is 3.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of HealthStream Inc (HSTM)?
The operating margin of HealthStream Inc is 9.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at HealthStream Inc (HSTM)?
Revenue at HealthStream Inc is growing +12.5% versus a year earlier (3y avg +4.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at HealthStream Inc (HSTM)?
Earnings per share at HealthStream Inc are growing +28.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does HealthStream Inc (HSTM) hold?
HealthStream Inc holds more cash than debt, $21.5M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 4, 2026