Is eBay, Inc. overvalued or undervalued?

As of 31 October 2025, eBay, Inc. moved from fair to attractive in its valuation grade. The company appears to be undervalued 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, its peer lululemon athletica, Inc. has a significantly lower P/E ratio of 11.49, indicating that eBay may be undervalued relative to its industry peers.
The company has demonstrated strong performance with a ROCE of 38.85% and a ROE of 43.44%, which further supports the attractiveness of its valuation. Despite recent stock performance showing a decline of 16.35% over the past week compared to a modest gain of 0.71% in the S&P 500, eBay has outperformed the index year-to-date with a return of 31.25% versus 16.30%. This suggests that while the stock may be experiencing short-term volatility, its long-term prospects remain strong.