Is Pinterest, Inc. overvalued or undervalued?

As of 8 May 2025, Pinterest, Inc. has moved from an attractive to a fair valuation grade. The company is currently fairly valued. Key ratios include a P/E ratio of 12, an EV to EBITDA of 92.87, and a PEG ratio of 0.01, indicating a low growth expectation relative to its price.
When compared to peers, Alphabet, Inc. has a P/E of 21.13, while Meta Platforms, Inc. shows a P/E of 26.26, suggesting that Pinterest is trading at a significant discount relative to these competitors. Additionally, Pinterest's ROE stands at an impressive 40.44%, which is a notable strength despite its overall valuation. Recent stock performance shows a year-to-date return of 17.24%, outperforming the S&P 500's 2.44% return, which may indicate positive market sentiment despite the valuation adjustment.