Is DoorDash, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for DoorDash, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, DoorDash appears to be overvalued, particularly when considering its high P/E ratio of 260 and an EV to EBITDA ratio of 112.05, which significantly exceed industry norms. The PEG ratio stands at 1.45, suggesting that the stock may not be justified at its current price given its growth prospects.
In comparison to peers, DoorDash's P/E ratio is notably higher than that of United Parcel Service, Inc., which has a P/E of 11.72, and FedEx Corp., which stands at 11.27, indicating that DoorDash is trading at a premium relative to these companies. Additionally, the company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 59.8% compared to the S&P 500's 12.22%, reinforcing the notion that while the stock has performed well, its current valuation may not be sustainable.