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NASDAQ:EBAY is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

By Mill Chart

Last update: Apr 19, 2024

EBAY INC (NASDAQ:EBAY) has caught the attention of our stock screener as a great value stock. NASDAQ:EBAY excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Examination for NASDAQ:EBAY

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:EBAY has earned a 7 for valuation:

  • A Price/Earnings ratio of 11.78 indicates a reasonable valuation of EBAY.
  • Based on the Price/Earnings ratio, EBAY is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of EBAY to the average of the S&P500 Index (24.80), we can say EBAY is valued rather cheaply.
  • EBAY is valuated reasonably with a Price/Forward Earnings ratio of 10.48.
  • Based on the Price/Forward Earnings ratio, EBAY is valued a bit cheaper than 69.70% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.27. EBAY is valued rather cheaply when compared to this.
  • 81.82% of the companies in the same industry are more expensive than EBAY, based on the Enterprise Value to EBITDA ratio.
  • EBAY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 75.76% of the companies in the same industry.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of EBAY may justify a higher PE ratio.

How do we evaluate the Profitability for NASDAQ:EBAY?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:EBAY scores a 8 out of 10:

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

Health Analysis for NASDAQ:EBAY

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:

  • An Altman-Z score of 4.57 indicates that EBAY is not in any danger for bankruptcy at the moment.
  • EBAY's Altman-Z score of 4.57 is fine compared to the rest of the industry. EBAY outperforms 78.79% of its industry peers.
  • EBAY has a debt to FCF ratio of 3.92. This is a good value and a sign of high solvency as EBAY would need 3.92 years to pay back of all of its debts.
  • EBAY has a better Debt to FCF ratio (3.92) than 66.67% of its industry peers.
  • A Current Ratio of 2.44 indicates that EBAY has no problem at all paying its short term obligations.
  • With an excellent Current ratio value of 2.44, EBAY belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
  • 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 93.94% of the companies in the same industry.

How do we evaluate the Growth for NASDAQ:EBAY?

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:EBAY boasts a 4 out of 10:

  • EBAY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.72% yearly.
  • 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.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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EBAY INC

NASDAQ:EBAY (5/29/2024, 7:00:02 PM)

After market: 52.09 0 (0%)

52.09

-0.81 (-1.53%)

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