Is eBay, Inc. overvalued or undervalued?

As of 30 June 2025, eBay, Inc. has moved from an expensive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 56, a Price to Book Value of 24.49, and an EV to EBITDA of 42.85. In comparison, its peer lululemon athletica, Inc. has a significantly lower P/E ratio of 11.49, indicating that eBay's valuation is higher relative to this competitor.
Despite the fair valuation, eBay's recent stock performance shows a mixed picture; while it has outperformed the S&P 500 year-to-date with a return of 44.63% compared to 12.22%, it has lagged in the short term with a 1-month return of -9.52% versus the S&P 500's 2.33%. Overall, eBay appears to be fairly valued in the current market context.