eBay logged a -1.7% change during today's afternoon session, and is now trading at a price of $91.51 per share.
eBay returned gains of 45.5% last year, with its stock price reaching a high of $101.15 and a low of $56.33. Over the same period, the stock outperformed the S&P 500 index by 30.4%. More recently, the company's 50-day average price was $90.91. eBay Inc., together with its subsidiaries, operates marketplace platforms that connect buyers and sellers in the United States, the United Kingdom, China, Germany, and internationally. Based in San Jose, CA, the Large-Cap Real Estate company has 11,500 full time employees. eBay has offered a 1.2% dividend yield over the last 12 months.
EPS Growth Achieved Primarily Through Stock Repurchases:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $7,429 | $8,894 | $10,420 | $9,795 | $10,112 | $10,283 |
| Gross Margins | 79% | 80% | 75% | 73% | 72% | 72% |
| Net Margins | 24.0% | 64.0% | n/a | -13.0% | 27.0% | 19.0% |
| Net Income (M) | $1,786 | $5,667 | $13,608 | -$1,269 | $2,767 | $1,975 |
| Net Interest Expense (M) | $311 | $304 | $269 | $235 | $195 | $264 |
| Depreciation & Amort. (M) | $600 | $583 | $502 | $442 | $403 | $324 |
| Diluted Shares (M) | 812 | 697 | 606 | 558 | 533 | 501 |
| Earnings Per Share | $2.09 | $7.89 | $20.54 | -$2.27 | $5.19 | $3.94 |
| EPS Growth | n/a | 277.51% | 160.33% | -111.05% | 328.63% | -24.08% |
| Avg. Price | $34.9 | $43.78 | $63.74 | $51.71 | $43.62 | $90.55 |
| P/E Ratio | 16.62 | 5.49 | 3.05 | -22.78 | 8.36 | 22.69 |
| Free Cash Flow (M) | $2,606 | $1,956 | $2,213 | $1,805 | $1,970 | $1,956 |
| CAPEX (M) | $508 | $463 | $444 | $449 | $456 | $458 |
| EV / EBITDA | 16.37 | 12.89 | 14.91 | 13.29 | 12.44 | 19.64 |
| Total Debt (M) | $7,758 | $7,746 | $9,082 | $8,871 | $7,723 | $7,425 |
| Net Debt / EBITDA | 2.89 | 2.06 | 2.25 | 2.41 | 2.45 | 1.89 |
| Current Ratio | 1.16 | 1.8 | 1.97 | 2.18 | 2.44 | 1.24 |
eBay has growing revenues and a flat capital expenditure trend, wider gross margins than its peer group, and healthy leverage levels. However, the firm has good EPS growth resulting mainly from stock repurchases. Finally, we note that eBay has positive cash flows and just enough current assets to cover current liabilities, as shown by its current ratio of 1.24.
a Very Low P/E Ratio but Trades Above Its Graham Number:
eBay has a trailing twelve month P/E ratio of 20.2, compared to an average of 27.31 for the Real Estate sector. Based on its EPS guidance of $5.22, the company has a forward P/E ratio of 17.4. According to the 14.0% compound average growth rate of eBay's historical and projected earnings per share, the company's PEG ratio is 1.45. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 11.2%. On this basis, the company's PEG ratio is 1.8. This suggests that these shares are overvalued. Furthermore, eBay is likely overvalued compared to the book value of its equity, since its P/B ratio of 8.84 is higher than the sector average of 1.94. The company's shares are currently trading 202.9% below their Graham number. Ultimately, eBay's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Analysts Give eBay an Average Rating of Hold:
The 27 analysts following eBay have set target prices ranging from $60.0 to $102.0 per share, for an average of $88.07 with a hold rating. The company is trading 3.9% away from its average target price, indicating that there is an analyst consensus of little upside potential.
eBay has an average amount of shares sold short because 4.4% of the company's shares are sold short. Institutions own 97.3% of the company's shares, and the insider ownership rate stands at 0.25%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 13% stake in the company is worth $5,288,149,285.
