eToro (ETOR) Stock Could Be A Bargain After Crypto Revenue Weakness

eToro Group has had a rough run over the past year, and the question for anyone looking at the stock today is whether the business still earns enough on its capital to make the current price make sense. With the share price and the underlying returns potentially pulling in different directions, the gap between the story and the numbers is what matters now.

• Over the past 12 months, eToro Group shares have fallen 44.4%, which puts fresh pressure on the case that the company’s capital returns can support where the stock trades.
• Recent earnings highlighted weaker crypto related revenue alongside a sizeable US$250m buyback plan and pending acquisitions, which can reshape how much capital eToro deploys and what it earns on that base in the years ahead.
• Prefer to judge eToro Group on earnings? See what eToro Group's 8.1x P/E says about the price.

The stock’s next move may depend on whether eToro Group is converting the capital tied up in its platform, marketing and deals into returns strong enough to justify today’s valuation.

If you are weighing whether eToro Group still earns enough on its capital to justify the price, it can help to compare that same question across 32 high quality undervalued stocks

Does eToro Group Look Undervalued on Excess Returns?

The Excess Returns model looks at how much profit eToro Group can earn above its cost of equity on each dollar of shareholder capital. In this view, the platform is treated as a financial engine that turns book value into earnings, then discounts those excess profits back to today.

For eToro Group, the inputs point to a business earning more on equity than its funding cost. Book value sits at $17.00 per share, with a stable EPS estimate of $2.48 per share based on the median return on equity over the past 5 years, against a cost of equity of $1.56 per share. That leaves an excess return estimate of $0.92 per share on an average return on equity of 15.12%, supported by a stable book value assumption of $16.43 per share. With the stock trading at $22.50 today and the Excess Returns projections putting eToro Group's estimated intrinsic value substantially above the current share price, the model suggests investors are paying less than those implied future economic profits might justify. The Q3 2026 earnings miss and crypto revenue slump help explain why the price stays below intrinsic value, despite the indicated excess returns on capital. Find out what eToro Group could be worth using our Excess Returns estimate.

The eToro Group Narrative: What Would Justify Today's Price?

Narratives for eToro Group pick up where the valuation puzzle leaves off and explain what kind of future path for growth, margins and earnings would need to occur for the stock to be worth materially more or materially less than where it trades today on Simply Wall St's Community page. Instead of a single output from one model or ratio, they map out the specific future that figure depends on so you can watch how closely reality matches it over time.

One of the top community narratives on eToro Group: 85% undervalued

According to evd101, a Simply Wall St Community investor who wrote this Narrative, eToro Group appeals most to readers who can tolerate higher risk.

"For investors with a high-risk tolerance and a belief in the near-term potential disruption of traditional, classical-style wealth management for retail investors who want to be more active and involved…"

Discover why this Narrative puts eToro Group at 85% undervalued.

Before you act on eToro Group's valuation, there is one more thread to pull

The valuation work only tells part of the story for eToro Group, because our broader checks have flagged specific areas of concern that deserve a closer look before you commit fresh capital. Take a closer look at 1 warning sign before settling on a valuation.

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