Is eBay, Inc. overvalued or undervalued?

As of 31 October 2025, eBay, Inc. has moved from fair to attractive in its valuation grade. The company appears to be undervalued based on its strong performance metrics, including 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 growth potential.
Despite recent short-term declines, eBay has shown strong long-term performance, with a 1-year return of 40.56% compared to the S&P 500's 19.89%, and a remarkable 3-year return of 110.41% versus 76.66% for the index. This suggests that eBay's growth prospects remain robust, reinforcing the conclusion that the stock is currently undervalued.