Is eBay, Inc. overvalued or undervalued?

As of 30 October 2024, eBay, Inc.'s valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a P/E ratio of 56, a Price to Book Value of 24.49, and an EV to EBITDA of 42.85. Compared to its peers, eBay's P/E ratio is higher than Amazon.com, Inc. at 36.48 and lower than MercadoLibre, Inc. at 58.78, suggesting a competitive yet elevated valuation within its sector.
Despite the recent grade change, eBay has demonstrated strong financial performance with a ROCE of 38.85% and a ROE of 43.44%. The company has outperformed the S&P 500 with a year-to-date return of 24.07% compared to the index's 2.44%, reinforcing its solid market position. Overall, while eBay is fairly valued, its high valuation ratios indicate that it may be approaching the upper limits of its market potential.