EBay Stock Valuation

EBAY -  USA Stock  

USD 75.97  1.25  1.67%

Do you wonder what the value of EBay Inc is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as EBay, is its stock price multiplied by the total number of shares outstanding, calculating EBay's enterprise value requires a different approach. It uses EBay's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
EBay Free Cash Flow is fairly stable at the moment as compared to the past year. EBay reported Free Cash Flow of 1.93 Billion in 2020. Tangible Asset Value is likely to rise to about 16.8 B in 2021, whereas Enterprise Value is likely to drop slightly above 41.7 B in 2021.
EBay Inc shows a prevailing Real Value of $67.93 per share. The current price of the entity is $75.97. At this time, the entity appears to be overvalued. Our model computes the value of EBay Inc from evaluating the entity fundamentals such as Operating Margin of 31.06 %, current valuation of 40.82 B, and Profit Margin of 112.83 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we advise acquiring undervalued instruments and dropping overvalued instruments since, at some point future time, asset prices and their ongoing real values will submerge.

EBay Valuation 

 
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EBay Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as EBay's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Overvalued
Today
75.97
20th of October 2021
Share
Please note that EBay's price fluctuation is very steady at this time. Calculation of the real value of EBay Inc is based on 3 months time horizon. Increasing EBay's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for EBay Inc is useful when determining the fair value of the EBay stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of EBay. Since EBay is currently traded on the exchange, buyers and sellers on that exchange determine the market value of EBay Stock. However, EBay's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
67.93
Real Value
83.57
Upside
Estimating the potential upside or downside of EBay Inc helps investors to forecast how EBay stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of EBay more accurately as focusing exclusively on EBay's fundamentals will not take into account other important factors:
Earnings
Estimates (8)
LowProjected EPSHigh
3.263.353.56
Details
Hype
Prediction
LowEstimated ValueHigh
73.9875.9477.90
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.210.210.21
Details
15 Analysts
Consensus
LowTarget PriceHigh
63.0072.8085.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use EBay's intrinsic value based on its ongoing forecasts of EBay's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against EBay's closest peers. When choosing an evaluation method for EBay Inc, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

EBay Investments

5.33 BillionShare

EBay Valuation Drivers Correlation

Many accounts on the financial statements of EBay Inc are highly interrelated and sometimes correlated. Consequently, when conducting EBay's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of EBay
Click cells to compare fundamentals

EBay Valuation Trend

Knowing EBay's actual value is paramount for traders to make sound investment determinations. EBay's real value is not only important for the investor to make better decisions but also for a more accurate overall view of EBay's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both EBay's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

EBay Market Cap

EBay Inc is rated # 3 in market capitalization category among related companies. Market capitalization of Internet Retail industry is currently estimated at about 269.66 Billion. EBay retains roughly 50.58 Billion in market capitalization claiming about 19% of equities under Internet Retail industry.
Capitalization  Total debt  Valuation  Workforce  Revenue

EBay Valuation Ratios as Compared to Competition

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. You can analyze the relationship between different fundamental ratios across EBay competition to find correlations between indicators driving EBay's intrinsic value. More Info.
EBay Inc is rated # 5 in price to sales category among related companies. It is rated below average in beta category among related companies totaling about  0.26  of Beta per Price to Sales. The ratio of Price to Sales to Beta for EBay Inc is roughly  3.92 

About EBay Valuation

The equity valuation mechanism determines the current worth of EBay Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of EBay Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of EBay Inc based exclusively on its fundamental and basic technical indicators. By analyzing EBay's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of EBay's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of EBay. We calculate exposure to EBay's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to EBay's related companies.
Last ReportedProjected for 2021
Gross Profit7.8 B7.2 B
Profit Margin 0.55  0.45 
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 Quarterly Enterprise Value

53.54 BillionShare

EBay Dividends Analysis For Valuation

Dividends per Basic Common Share is likely to rise to 0.68 in 2021, whereas Payment of Dividends and Other Cash Distributions is likely to drop (482.3 M) in 2021. . EBay Earnings per Basic Share are fairly stable at the moment as compared to the past year. EBay reported Earnings per Basic Share of 7.98 in 2020. Earnings per Diluted Share is likely to rise to 8.51 in 2021, whereas Accumulated Retained Earnings Deficit are likely to drop slightly above 21.1 B in 2021.
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-447 M-482.3 M
Dividend Yield 0.013  0.0129 
Dividends per Basic Common Share 0.64  0.68 
There are various types of dividends EBay can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of EBay shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from EBay Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When EBay pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of EBay by the value of the dividends paid out.

EBay Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as EBay does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio3.52
Earnings Quarterly Growth1,338.90%
Revenue Growth14.20%
Payout Ratio20.73%
Enterprise Value To Ebitda11.51
Earnings Growth1,392.20%
Enterprise Value To Revenue3.58

EBay Current Valuation Indicators

Valuation refers to the process of determining the present value of EBay Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value EBay we look at many different elements of the entity such as EBay's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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.
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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.