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NASDAQ:EBAY is an undervalued gem with solid fundamentals.

By Mill Chart

Last update: Mar 29, 2024

Uncover the potential of EBAY INC (NASDAQ:EBAY) as our stock screener's choice for an undervalued stock. NASDAQ:EBAY maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

A Closer Look at Valuation for NASDAQ:EBAY

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:EBAY has achieved a 7 out of 10:

  • 78.79% of the companies in the same industry are more expensive than EBAY, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.48. EBAY is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 11.09, the valuation of EBAY can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of EBAY indicates a somewhat cheap valuation: EBAY is cheaper than 75.76% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, EBAY is valued rather cheaply.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EBAY indicates a rather cheap valuation: EBAY is cheaper than 84.85% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of EBAY indicates a somewhat cheap valuation: EBAY is cheaper than 75.76% of the companies listed in the same industry.
  • EBAY has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Assessment of NASDAQ:EBAY

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:EBAY was assigned a score of 8 for profitability:

  • EBAY has a Return On Assets of 12.80%. This is amongst the best in the industry. EBAY outperforms 90.91% of its industry peers.
  • The Return On Equity of EBAY (43.26%) is better than 96.97% of its industry peers.
  • EBAY's Return On Invested Capital of 10.26% is fine compared to the rest of the industry. EBAY outperforms 78.79% of its industry peers.
  • EBAY has a Profit Margin of 27.36%. This is amongst the best in the industry. EBAY outperforms 100.00% of its industry peers.
  • With an excellent Operating Margin value of 23.17%, EBAY belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
  • EBAY's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 71.98%, EBAY belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.

Analyzing Health Metrics

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:EBAY, the assigned 7 reflects its health status:

  • EBAY has an Altman-Z score of 4.63. This indicates that EBAY is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of EBAY (4.63) is better than 75.76% of its industry peers.
  • The Debt to FCF ratio of EBAY is 3.92, which is a good value as it means it would take EBAY, 3.92 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 3.92, EBAY is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • EBAY has a Current Ratio of 2.44. This indicates that EBAY is financially healthy and has no problem in meeting its short term obligations.
  • EBAY's Current ratio of 2.44 is amongst the best of the industry. EBAY outperforms 81.82% of its industry peers.
  • A Quick Ratio of 2.44 indicates that EBAY has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 2.44, EBAY belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.

A Closer Look at Growth for NASDAQ:EBAY

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:EBAY has received a 4 out of 10:

  • The Earnings Per Share has been growing by 12.72% on average over the past years. This is quite good.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of EBAY contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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EBAY INC

NASDAQ:EBAY (5/24/2024, 7:23:46 PM)

After market: 54.46 +0.05 (+0.09%)

54.41

+1.6 (+3.03%)

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