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Reassessing eToro Group (ETOR) Valuation After Recent Share Price Weakness

Simply Wall St · 5d ago

eToro Group (ETOR) has been drawing attention after a weaker recent share performance, with the stock showing negative returns over the past week, month, and past 3 months, encouraging investors to reassess what they are paying for exposure.

See our latest analysis for eToro Group.

Zooming out, eToro Group’s recent softness, including a 3.42% 1 day share price return decline and an 18.51% 30 day share price return decline, suggests fading short term momentum alongside a relatively modest 1.77% year to date share price return decline at a last close of $35.05.

If you are reassessing eToro Group, it could also be a good moment to widen your watchlist and look at high growth tech and AI stocks that are shaping the next wave of trading platforms and tools.

So with eToro Group trading at $35.05, alongside a value score of 4, an intrinsic discount of 19% and a sizable gap to the average analyst price target, is there really a buying opportunity here, or is the market already pricing in future growth?

Price to Earnings of 14.2x: Is it justified?

eToro Group is trading on a P/E of 14.2x at a last close of $35.05, which screens as relatively low compared with peers and industry benchmarks.

The P/E ratio links what you pay today to the company’s current earnings, so for a trading platform business it is a quick way to see how the market values its profit engine.

For eToro Group, several checks point in the same direction. The shares are described as trading at good value compared to peers and the wider Capital Markets industry, and the current P/E of 14.2x sits below a peer average of 16.9x. Against the US Capital Markets industry average P/E of 25.7x, the gap is even wider. There is also an estimated fair P/E of 18.3x, which is higher than where the stock sits today and can be seen as a level the market could move towards if sentiment and fundamentals line up.

Across these reference points, the message is consistent: the current earnings multiple is lower than both peer and industry markers, and below the estimated fair ratio.

Explore the SWS fair ratio for eToro Group

Result: Price-to-Earnings of 14.2x (UNDERVALUED)

However, you still need to weigh risks, such as a 94.4% annual revenue decline, and the realities of a highly competitive trading platform market that can pressure profitability.

Find out about the key risks to this eToro Group narrative.

Another View: Our DCF Model

The P/E comparison points to value, but our DCF model adds a second lens. On that measure, eToro Group at $35.05 sits about 19% below an estimated fair value of $43.36, which also flags the shares as undervalued and raises a simple question: is the discount justified by the risks?

Look into how the SWS DCF model arrives at its fair value.

ETOR Discounted Cash Flow as at Jan 2026
ETOR Discounted Cash Flow as at Jan 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out eToro Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 875 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own eToro Group Narrative

If you see the numbers differently or just prefer to test your own assumptions, you can build a custom view of eToro Group in a few minutes, starting with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding eToro Group.

Looking for more investment ideas?

If eToro Group is on your radar, do not stop there, widen your search so you are not relying on a single story or sector.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.