Is Fiverr International Ltd. overvalued or undervalued?

As of 7 May 2025, Fiverr International Ltd. has moved from a fair to an expensive valuation grade, indicating that the stock is overvalued. The company's P/E ratio stands at 66, significantly higher than the industry average, while its EV to EBITDA ratio is an alarming -316.11, suggesting severe profitability issues. Additionally, the ROE is only 4.82%, which further highlights the challenges the company faces in generating returns for its shareholders.
In comparison to its peers, Fiverr's valuation metrics are concerning. For instance, AvePoint, Inc. has a P/E ratio of 265.46, while Global Blue Group Holding AG is valued attractively with a P/E of 30.28. These comparisons underscore Fiverr's expensive valuation relative to its performance. The recent stock performance shows a decline of 8.45% year-to-date, contrasting with a modest gain of 2.44% for the S&P 500, reinforcing the notion that Fiverr is currently overvalued.