Is eBay, Inc. overvalued or undervalued?

As of 31 October 2025, eBay, Inc. moved from fair to attractive in its valuation grade, indicating a shift towards being undervalued. The company appears 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, peers like lululemon athletica, Inc. show a more attractive P/E of 11.49, highlighting eBay's relatively high valuation.
Despite recent stock performance showing a decline of 16.35% over the past week compared to a 0.71% increase in the S&P 500, eBay has outperformed the index on a year-to-date basis with a return of 31.25% against the S&P 500's 16.30%. This suggests that while eBay's short-term performance has been weak, its long-term growth potential remains strong, reinforcing the view that it is currently undervalued.