Is Airbnb, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Airbnb, Inc. has moved from expensive to fair. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 34, an EV to EBITDA of 30.64, and a Price to Book Value of 11.10. In comparison, Booking Holdings, Inc. has a higher P/E of 57.33 and an EV to EBITDA of 33.73, while Cintas Corp. is rated very expensive with a P/E of 54.99.
In terms of stock performance, Airbnb has underperformed relative to the S&P 500 over the year, returning 2.49% compared to the index's 17.14%. However, over the last three years, Airbnb has shown a return of 5.66%, which is significantly lower than the S&P 500's 70.41%, reinforcing the notion that the stock is currently fairly valued.