EBay Profitability Analysis

EBAY -  USA Stock  

USD 74.72  2.25  3.10%

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.

EBay Current Profitability Trends 

 
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Price to Sales Ratio is likely to rise to 3.75 in 2021, whereas Return on Sales is likely to drop 0.52 in 2021. Net Income Per Employee is likely to rise to about 480.1 K in 2021, whereas Accumulated Other Comprehensive Income is likely to drop slightly above 596 M in 2021.

EBay Revenues

9.51 BillionShare
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 Gross Profit vs. Shares Outstanding 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 shares outstanding category among related companies. It is one of the top stocks in gross profit category among related companies fabricating about  12.46  of Gross Profit per Shares Outstanding. EBay Gross Profit is fairly stable at the moment as compared to the past year. EBay reported Gross Profit of 7.8 Billion in 2020. 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 Gross Profit vs. Shares Outstanding

Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.
EBay 
Shares Outstanding 
 = 
Public Shares 
Repurchased 
626 M
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
EBay 
Gross Profit 
 = 
Revenue 
-  
Cost of Revenue 
7.8 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

EBay Gross Profit Comparison

EBay is currently under evaluation in gross profit 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 2021
Accumulated Other Comprehensive Income616 M596 M
Consolidated Income5.7 B4.5 B
Net Income5.7 B4.5 B
Net Income Common Stock5.7 B4.5 B
Net Loss Income from Discontinued Operations-3.1 B-3.2 B
Operating Income2.7 B2.4 B
Income Tax Expense878 M717.9 M
Net Income Per Employee445 K480.1 K
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 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

Correlation analysis and pair trading evaluation for EBay and Lightinthebox Holding. 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
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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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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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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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.