Now trading at a price of $39.47, eBay has moved -1.7% so far today.
eBay returned losses of -11.0% last year, with its stock price reaching a high of $52.23 and a low of $37.17. Over the same period, the stock underperformed the S&P 500 index by -27.0%. As of April 2023, the company's 50-day average price was $41.75. eBay Inc. operates marketplace platforms that connect buyers and sellers in the United States and internationally. Based in San Jose, CA, the large-cap Consumer Discretionary company has 11,600 full time employees. eBay has offered a 2.4% dividend yield over the last 12 months.
Overview of the Company's Finances:
|Net Income (MM)||$2,530||$1,786||$5,667||$13,608||-$1,269||$1,342|
|Earnings Per Share||$2.55||$2.09||$7.89||$20.54||-$2.27||$2.33|
|Diluted Shares (MM)||991||856||718||663||558||493|
|Free Cash Flow (MM)||$2,035||$2,606||$2,541||$2,649||$168||$1,479|
|Capital Expenditures (MM)||$623||$508||$463||$444||$2,459||$1,388|
|Net Current Assets (MM)||-$9,412||-$10,598||-$8,559||-$7,737||-$6,407||-$5,971|
|Long Term Debt (MM)||$7,685||$6,738||$7,740||$7,727||$7,721||$7,721|
|Net Debt / EBITDA||1.72||2.18||1.69||2.24||2.36||2.36|
eBay has weak revenue growth and increasing reinvestment in the business and wider gross margins than its peer group. Additionally, the company's financial statements display decent operating margins with a negative growth trend and healthy leverage. Furthermore, eBay has flat EPS growth and irregular cash flows.
A Very Low P/E Ratio but Trades Above Its Graham Number:
eBay has a trailing twelve month P/E ratio of 8.4, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $4.44, the company has a forward P/E ratio of 9.4. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is -1.5%. On this basis, the company's PEG ratio is -5.62, which indicates that its shares are overpriced. Furthermore, eBay is likely overvalued compared to the book value of its equity, since its P/B ratio of 3.48 is higher than the sector average of 3.12. The company's shares are currently trading 66.4% above their Graham number.
eBay Has an Average Rating of Hold:
The 24 analysts following eBay have set target prices ranging from $32.0 to $56.0 per share, for an average of $45.34 with a hold rating. As of April 2023, the company is trading -7.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.
eBay has an average amount of shares sold short because 3.5% of the company's shares are sold short. Institutions own 91.2% of the company's shares, and the insider ownership rate stands at 0.23%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $2,365,872,415.