eBay Inc.
eBay Inc. Fundamental Analysis
eBay Inc. (EBAY) shows moderate financial fundamentals with a PE ratio of 25.54, profit margin of 17.58%, and ROE of 44.12%. The company generates $11.5B in annual revenue with moderate year-over-year growth of 7.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze EBAY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentEBAY demonstrates superior asset utilization.
Valuation Score
WeakEBAY trades at a premium to fair value.
Growth Score
ExcellentEBAY delivers strong and consistent growth momentum.
Financial Health Score
ModerateEBAY shows balanced financial health with some risks.
Profitability Score
ExcellentEBAY achieves industry-leading margins.
Key Financial Metrics
Is EBAY Expensive or Cheap?
P/E Ratio
EBAY trades at 25.54 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, EBAY's PEG of 4.34 indicates potential overvaluation.
Price to Book
The market values eBay Inc. at 11.81 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.90 times EBITDA. This signals the market has high growth expectations.
How Well Does EBAY Make Money?
Net Profit Margin
For every $100 in sales, eBay Inc. keeps $17.58 as profit after all expenses.
Operating Margin
Core operations generate 19.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $44.12 in profit for every $100 of shareholder equity.
ROA
eBay Inc. generates $11.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
eBay Inc. produces operating cash flow of $2.12B, showing steady but balanced cash generation.
Free Cash Flow
eBay Inc. generates strong free cash flow of $1.67B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.77 in free cash annually.
FCF Yield
EBAY converts 3.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.44
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How EBAY Stacks Against Its Sector Peers
| Metric | EBAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.54 | 23.70 | Neutral |
| ROE | 44.12% | 1185.00% | Weak |
| Net Margin | 17.58% | 2505.00% | Weak |
| Debt/Equity | 1.60 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.22 | 2.86 | Neutral |
| ROA | 11.40% | -8133.00% (disorted) | Strong |
EBAY outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews eBay Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
96.48%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-43.58%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
42.26%
Industry Style: Cyclical, Growth, Discretionary
High Growth