EBay Profitability Analysis

EBAY -  USA Stock  

USD 45.19  0.88  1.99%

For EBay profitability analysis, we use financial ratios and fundamental drivers that measure the ability of EBay to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well EBay Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between EBay's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of EBay Inc over time as well as its relative position and ranking within its peers. Continue to Investing Opportunities.
  
Refresh
EBay Price to Sales Ratio is fairly stable at the moment as compared to the past year. EBay reported Price to Sales Ratio of 4.16 in 2021. Return on Sales is likely to rise to 1.43 in 2022, whereas Sales per Share is likely to drop 13.89 in 2022. EBay Accumulated Other Comprehensive Income is fairly stable at the moment as compared to the past year. EBay reported Accumulated Other Comprehensive Income of 398 Million in 2021. Consolidated Income is likely to rise to about 14.7 B in 2022, whereas Net Loss Income from Discontinued Operations is likely to drop (13.7 B) in 2022.

EBay Revenues

9.54 Billion

Share
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.

EBay Inc Return On Equity vs. Earnings Per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining EBay's current stock value. Our valuation model uses many indicators to compare EBay value to that of its competitors to determine the firm's financial worth.
EBay Inc is one of the top stocks in earnings per share category among related companies. It is rated # 3 in return on equity category among related companies reporting about  0.21  of Return On Equity per Earnings Per Share. The ratio of Earnings Per Share to Return On Equity for EBay Inc is roughly  4.84 . Average Equity is likely to rise to about 10 B in 2022. Comparative valuation analysis is a catch-all model that can be used if you cannot value EBay by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for EBay's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the EBay's earnings, one of the primary drivers of an investment's value.

EBay Return On Equity vs. Earnings Per Share

Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
EBay 
Earnings per Share 
 = 
Earnings 
Average Shares 
18.28 X
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
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.
EBay 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
3.78 %
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.

EBay Return On Equity Comparison

EBay is currently under evaluation in return on equity category among related companies.

EBay Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in EBay, profitability is also one of the essential criteria for including it into their portfolios because, without profit, EBay will eventually generate negative long term returns. The profitability progress is the general direction of EBay's change in net profit over the period of time. It can combine multiple indicators of EBay, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income398 M467.7 M
Consolidated Income13.6 B14.7 B
Net Income13.6 B14.7 B
Net Income Common Stock13.6 B14.7 B
Net Loss Income from Discontinued Operations-13.4 B-13.7 B
Operating Income2.9 B2.5 B
Income Tax Expense146 M149.8 M
Net Income Per Employee400.5 K432.1 K
eBay Inc. operates marketplace platforms that connect buyers and sellers in the United States and internationally. 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 10800 people.

EBay Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on EBay. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of EBay position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the EBay's important profitability drivers and their relationship over time.

EBay Profitability Trends

EBay profitability trend refers to the progression of profit or loss within a business. An upward trend means that EBay's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is EBay's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

EBay Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between EBay different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards EBay in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down EBay's future profitability.

Use EBay in pair-trading

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 Trading

EBay Inc Pair Trading Analysis

The ability to find closely correlated positions to EBay could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace EBay when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back EBay - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling EBay Inc to buy it.
The correlation of EBay is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as EBay moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if EBay Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for EBay can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your EBay position

In addition to having EBay in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run IT Thematic Idea Now

IT
IT Theme
Information Technology (IT) companies and IT service providers across different domains. The IT theme has 30 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize IT Theme or any other thematic opportunities.
View All  Next Launch IT
Continue to Investing Opportunities. 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Complementary Tools for EBay Stock analysis

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.
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
To fully project EBay's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of EBay Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include EBay's income statement, its balance sheet, and the statement of cash flows.
Potential EBay investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although EBay investors may work on each financial statement separately, they are all related. The changes in EBay's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on EBay's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.