Is Pinterest, Inc. overvalued or undervalued?

As of 4 August 2025, Pinterest, Inc. has moved from fair to attractive in its valuation grade, indicating a more favorable assessment of its stock. The company appears to be undervalued, supported by a P/E ratio of 12, a PEG ratio of 0.01, and a Price to Book Value of 4.94. In comparison to peers, CoStar Group, Inc. has a much higher P/E of 381.24, while VeriSign, Inc. shows a P/E of 33.05, highlighting Pinterest's relative valuation attractiveness.
In terms of recent performance, Pinterest has outperformed the S&P 500 with a year-to-date return of 25.17% compared to the index's 12.22%. However, over the last three years, Pinterest's return of 45.67% falls short of the S&P 500's impressive 70.41%, suggesting room for improvement despite its current valuation appeal.