Is Taboola.com Ltd. overvalued or undervalued?

As of 10 June 2025, the valuation grade for Taboola.com Ltd. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a P/E ratio of 71, an EV to EBITDA of 8.78, and a Price to Book Value of 1.29, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison with peers, Taboola's P/E ratio is significantly higher than that of Yelp, Inc., which has a P/E of 15.42, and Cargurus, Inc., which is at 17.84, both of which are in a more favorable valuation position. Additionally, while Taboola's PEG ratio stands at 0.57, indicating potential growth, it remains overshadowed by the high P/E ratio, suggesting that the market may be overestimating future growth prospects. Despite a recent positive return of 7.4% over the past year compared to the S&P 500's 10.26%, the overall valuation metrics point towards an overvaluation of Taboola.com Ltd.