Is Fiverr International Ltd. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Fiverr International Ltd. moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is overvalued based on its current metrics, with a P/E ratio of 66, a Price to Book Value of 3.20, and a PEG Ratio of 0.53, all of which are considerably higher than its peers. For instance, Kyndryl Holdings, Inc. has a P/E of 31.33 and ExlService Holdings, Inc. has a P/E of 31.10, both suggesting a more attractive valuation compared to Fiverr.
In terms of performance, Fiverr has struggled significantly, with a year-to-date return of -20.55% compared to the S&P 500's 12.22%, and a staggering 5-year return of -79.58% against the S&P 500's 96.61%. This stark contrast reinforces the notion that Fiverr is not only overvalued but also underperforming relative to broader market benchmarks.