Is eBay, Inc. overvalued or undervalued?

As of 31 October 2025, eBay, Inc. has moved from a fair to attractive valuation grade, indicating a shift in perception towards its stock. The company appears to be undervalued, especially when considering its P/E ratio of 56, which, while high, is lower than the peer average of 70.51, and a PEG ratio of 1.18 that suggests reasonable growth expectations relative to its price. Additionally, eBay's ROE stands at an impressive 43.44%, highlighting its strong profitability compared to peers like lululemon athletica, which has a P/E of 11.49.
In terms of performance, eBay has delivered a YTD return of 33.61%, significantly outperforming the S&P 500's 16.30% during the same period, and a 1Y return of 42.44% compared to the S&P 500's 19.89%. This strong performance reinforces the notion that eBay may be undervalued relative to its growth potential and profitability metrics.