Is Fiverr International Ltd. overvalued or undervalued?

As of 17 October 2025, Fiverr International Ltd. has moved from an attractive to a very expensive valuation grade. The company is overvalued based on its current financial metrics, including a P/E ratio of 66, a Price to Book Value of 3.20, and an EV to Sales ratio of 2.53. In comparison, Kyndryl Holdings, Inc. has a P/E ratio of 31.33, while ExlService Holdings, Inc. stands at 31.10, indicating that Fiverr's valuation is significantly higher than its peers.
Fiverr's performance has been underwhelming, with a year-to-date return of -31.01%, compared to a 13.30% return for the S&P 500, and a staggering -87.37% return over the past five years, while the S&P 500 has gained 91.29%. This stark contrast underscores the overvaluation of Fiverr, as its high ratios do not align with its poor stock performance relative to the broader market.