EBay Return On Equity

EBAY -  USA Stock  

USD 57.71  0.47  0.81%

EBay Inc fundamentals help investors to digest information that contributes to EBay's financial success or failures. It also enables traders to predict the movement of EBay Stock. This fundamental analysis module provides a way for investors to measures EBay's intrinsic value by examining all of its available economic and financial indicators and drivers, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to EBay stock. Please note, this module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

EBay Return On Equity 

 
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Average Equity is likely to rise to about 2.7 B in 2022.

EBay Return On Equity Analysis

EBay's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
 2019 2020 2021 2022 (projected)
Accounts Payable270 M332 M298.8 M284.69 M
Receivables700 M412 M473.8 M486.27 M
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
More About Return On Equity | All Equity Analysis

Current EBay Return On Equity

    
  28.45 %  
Most of EBay's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, EBay Inc is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

EBay Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for EBay is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Return On Equity. Since EBay's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of EBay's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of EBay's interrelated accounts and indicators.

EBay Return On Equity Historical Pattern

Today, most investors in EBay Stock are looking for potential investment opportunities by analyzing not only static indicators but also various EBay's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of EBay return on equity as a starting point in their analysis.
 EBay Return On Equity 
Share
      Timeline 
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Compare to competition

EBay Shareholders Equity

Shareholders Equity

3.29 BillionShare
EBay Shareholders Equity is fairly stable at the moment as compared to the past year. EBay reported Shareholders Equity of 3.2 Billion in 2021
Based on the latest financial disclosure, EBay Inc has a Return On Equity of 28.45%. This is much higher than that of the Consumer Cyclical sector and significantly higher than that of the Internet Retail industry. The return on equity for all United States stocks is notably lower than that of the firm.

EBay Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses EBay's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of EBay could also be used in its relative valuation, which is a method of valuing EBay by comparing valuation metrics of similar companies.
EBay is currently under evaluation in return on equity category among related companies.

EBay Current Valuation Drivers

We derive many important indicators used in calculating different scores of EBay from analyzing EBay's financial statements. These drivers represent accounts that assess EBay's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of EBay's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee(72.06 K)180.71 K134.29 K445 K400.5 K432.12 K
Revenue Per Employee678.51 K767.57 K812.03 K806.53 K725.88 K644.93 K
Average Assets26.05 B23.75 B20.1 B19.17 B17.25 B20.9 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA2.95 B3.29 B2.65 B7.15 B8.23 B6.67 B
Earnings Before Interest Taxes and Depreciation Amortization USD2.95 B3.29 B2.65 B7.15 B8.23 B6.67 B
Earnings before Tax2.27 B2.65 B2.02 B6.54 B7.53 B8.12 B
Average Equity10.6 B6.99 B3.86 B2.87 B2.59 B2.66 B
Enterprise Value47.66 B34.15 B36.73 B41.81 B37.63 B40.16 B
Free Cash Flow2.48 B2.04 B2.59 B1.93 B1.73 B2.13 B
Invested Capital25.48 B20.14 B16.85 B17.97 B20.67 B21.64 B
Invested Capital Average25.33 B22.27 B18.42 B17.82 B20.49 B21.09 B
Market Capitalization39.42 B27.03 B29.38 B34.64 B31.18 B35.04 B
Tangible Asset Value21.14 B17.57 B13.6 B15.01 B13.51 B16.22 B
Working Capital4.18 B2.67 B640 M3.19 B2.87 B3.93 B

EBay Fundamentals

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.
Last ReportedProjected for 2022
Average Equity2.6 B2.7 B
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.

EBay Implied Volatility

    
  60.2  
EBay's implied volatility exposes the market's sentiment of EBay Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if EBay's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that EBay stock will not fluctuate a lot when EBay's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards EBay in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, EBay's short interest history, or implied volatility extrapolated from EBay options trading.

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 Mogu Inc ADR. 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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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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Is EBay's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of EBay. If investors know EBay will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about EBay listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
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's underlying business (such as a 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.