Is Taboola.com Ltd. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Taboola.com Ltd. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, particularly when considering its P/E ratio of 71, which is significantly lower than the peer average P/E of 56.02 for similar companies in the industry. Additionally, Taboola's EV to EBITDA ratio stands at 8.78, which is favorable compared to peers like MakeMyTrip Ltd. with an EV to EBITDA of 65.66, further supporting the undervaluation thesis.
In terms of returns, Taboola has outperformed the S&P 500 over the past week and month, with returns of 2.93% and 6.69%, respectively, while the S&P 500 returned 1.05% and 2.33% in the same periods. However, the year-to-date return of -3.84% lags behind the S&P 500's 12.22%, suggesting some volatility in the stock's performance. Overall, the combination of favorable valuation ratios and recent stock performance indicates that Taboola.com Ltd. is currently undervalued in the market.