Is Coupang, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Coupang, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently overvalued, with a P/E ratio of 337, a Price to Book Value of 11.81, and an EV to EBITDA of 52.73. In comparison, Amazon.com, Inc. has a fair P/E ratio of 37.92 and an EV to EBITDA of 19.22, while MercadoLibre, Inc. is considered expensive with a P/E of 57.96 and an EV to EBITDA of 32.28.
Despite its overvaluation, Coupang has shown strong performance relative to the S&P 500, with a year-to-date return of 52.05% compared to the S&P 500's 12.22%. This outperformance may reflect investor enthusiasm, but the high valuation ratios suggest that the stock may not be a sustainable investment at current levels.