Is eBay, Inc. overvalued or undervalued?

As of 17 October 2025, eBay, Inc. has moved from a very expensive to a fair valuation grade. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 56, a Price to Book Value of 24.49, and an EV to EBITDA of 42.85. In comparison to peers, eBay's P/E ratio is significantly higher than lululemon athletica, Inc., which has a P/E of 11.49, indicating that eBay may be overvalued relative to this competitor.
Despite this, eBay has demonstrated strong returns, outperforming the S&P 500 across multiple periods, including a year-to-date return of 48.52% compared to the S&P 500's 13.30%. This performance suggests that while eBay's valuation metrics may indicate a fair valuation, its strong market performance could support a more favorable outlook.