EBay Beneish M Score

EBAY -  USA Stock  

USD 75.97  1.25  1.67%

This module uses fundamental data of EBay to approximate the value of its Beneish M Score. EBay M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to EBay Piotroski F Score and EBay Altman Z Score analysis.

EBay Beneish M Score 

 
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EBay Debt Current is fairly stable at the moment as compared to the past year. EBay reported Debt Current of 6 Million in 2020. Long Term Debt to Equity is likely to rise to 2.34 in 2021, whereas Total Debt is likely to drop slightly above 8 B in 2021. EBay Current Ratio is fairly stable at the moment as compared to the past year. EBay reported Current Ratio of 1.80 in 2020. Debt to Equity Ratio is likely to rise to 4.77 in 2021, whereas Calculated Tax Rate is likely to drop 24.18 in 2021.
At this time, it appears that EBay Inc is an unlikely manipulator. The earnings manipulation may begin if EBay's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by EBay executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of EBay's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.55
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
1.11
Asset Quality
0.81
Expense Coverage
1.18
Gross Margin Strengs
1.11
Accruals Factor
1.18
Depreciation Resistance
0.96
Net Sales Growth
0.93
Financial Leverage Condition
0.93

EBay Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if EBay's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues9.5 B10.3 B
Significantly Down
Decreasing
Stable
Selling General and Administrative ExpenseB3.6 B
Significantly Up
Increasing
Stable
Net Cash Flow from Operations2.8 B2.4 B
Fairly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion632.9 M609 M
Sufficiently Up
Decreasing
Slightly volatile
Total Assets21.7 B19.3 B
Moderately Up
Decreasing
Slightly volatile
Investments5.3 B4.3 B
Fairly Up
Decreasing
Stable
Investments Current2.8 B2.4 B
Fairly Up
Decreasing
Stable
Investments Non Current2.5 B1.9 B
Significantly Up
Decreasing
Stable
Property Plant and Equipment Net1.7 B1.7 B
Fairly Down
Decreasing
Stable
Trade and Non Trade Receivables669.2 M652 M
Fairly Up
Decreasing
Slightly volatile
Total Liabilities17 B15.7 B
Significantly Up
Increasing
Slightly volatile
Current Assets9.1 B7.2 B
Significantly Up
Decreasing
Slightly volatile
Assets Non Current12.6 B12.1 B
Sufficiently Up
Decreasing
Stable
Current LiabilitiesBB
Fairly Up
Decreasing
Slightly volatile
Liabilities Non Current11 B11.7 B
Significantly Down
Increasing
Slightly volatile
Total DebtB8.1 B
Slightly Down
Increasing
Slightly volatile
Debt Current6.2 MM
Fairly Up
Increasing
Very volatile
Debt Non Current7.6 B8.1 B
Notably Down
Increasing
Slightly volatile
Operating Income2.4 B2.7 B
Fairly Down
Decreasing
Stable
Gross Margin0.840.759
Significantly Up
Increasing
Slightly volatile

EBay Inc Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between EBay's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards EBay in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find EBay's degree of accounting gimmicks and manipulations.

About EBay Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

632.95 MillionShare
EBay Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. EBay reported Depreciation Amortization and Accretion of 609 Million in 2020

EBay Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as EBay. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201620172018201920202021 (projected)
Revenues9.3 B9.93 B8.65 B8.64 B10.27 B9.51 B
Total Assets23.85 B25.99 B22.82 B18.17 B19.31 B21.68 B
Current Assets8.88 B7.74 B7.13 B4.71 B7.19 B9.09 B
Assets Non Current14.97 B18.24 B15.69 B13.47 B12.12 B12.6 B
Total Liabilities13.31 B17.94 B16.54 B15.3 B15.75 B16.99 B
Current Liabilities3.85 B3.56 B4.45 B4.07 B4 B4.96 B
Total Debt8.96 B10.02 B9.23 B8.22 B8.06 B8 B
Debt Non Current7.51 B9.23 B7.68 B7.2 B8.06 B7.63 B
Operating Income2.33 B2.26 B1.75 B1.86 B2.71 B2.4 B
Investments9.3 B10.07 B6.49 B3.41 B4.28 B5.33 B
Investments Current5.33 B3.74 B2.71 B1.85 B2.39 B2.82 B

About EBay Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze EBay Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of EBay using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of EBay Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
eBay Inc. operates marketplace platforms that connect buyers and sellers worldwide. The company was founded in 1995 and is headquartered in San Jose, California. EBay operates under Internet Retail classification in the United States and is traded on NASDAQ Exchange. It employs 12700 people.

EBay Investors Sentiment

The influence of EBay's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in EBay. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Current Sentiment - EBAY

EBay Inc Investor Sentiment

Majority of Macroaxis users are currently bullish on EBay Inc. What is your opinion about investing in EBay Inc? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Pair Trading with EBay

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if EBay position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in EBay will appreciate offsetting losses from the drop in the long position's value.

EBay Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for EBay and Mercadolibre. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
Run Pair Correlation  
Continue to EBay Piotroski F Score and EBay Altman Z Score analysis. Note that the EBay Inc information on this page should be used as a complementary analysis to other EBay's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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When running EBay Inc price analysis, check to measure EBay's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy EBay is operating at the current time. Most of EBay's value examination focuses on studying past and present price action to predict the probability of EBay's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move EBay's price. Additionally, you may evaluate how the addition of EBay to your portfolios can decrease your overall portfolio volatility.
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The market value of EBay Inc is measured differently than its book value, which is the value of EBay that is recorded on the company's balance sheet. Investors also form their own opinion of EBay's value that differs from its market value or its book value, called intrinsic value, which is EBay's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because EBay's market value can be influenced by many factors that don't directly affect EBay Inc underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between EBay's value and its price as these two are different measures arrived at by different means. Investors typically determine EBay value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, EBay's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.