Investors should take notice of NASDAQ:EBAY—it offers a great deal for the fundamentals it presents.

Our stock screening tool has pinpointed EBAY INC (NASDAQ:EBAY) as an undervalued stock option. NASDAQ:EBAY retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Evaluating Valuation: NASDAQ:EBAY

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:EBAY, the assigned 7 reflects its valuation:

• With a Price/Earnings ratio of 11.75, the valuation of EBAY can be described as very reasonable.
• Compared to the rest of the industry, the Price/Earnings ratio of EBAY indicates a somewhat cheap valuation: EBAY is cheaper than 75.00% of the companies listed in the same industry.
• EBAY is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
• EBAY is valuated reasonably with a Price/Forward Earnings ratio of 10.08.
• Based on the Price/Forward Earnings ratio, EBAY is valued a bit cheaper than 78.13% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, EBAY is valued a bit cheaper.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EBAY indicates a somewhat cheap valuation: EBAY is cheaper than 75.00% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, EBAY is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
• 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.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:EBAY, the assigned 8 is a significant indicator of profitability:

• With an excellent Return On Assets value of 12.32%, EBAY belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
• EBAY's Return On Equity of 42.05% is amongst the best of the industry. EBAY outperforms 96.88% of its industry peers.
• EBAY has a Return On Invested Capital of 11.09%. This is in the better half of the industry: EBAY outperforms 78.13% of its industry peers.
• EBAY's Profit Margin of 25.97% is amongst the best of the industry. EBAY outperforms 100.00% of its industry peers.
• With an excellent Operating Margin value of 23.61%, EBAY belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
• EBAY's Operating Margin has improved in the last couple of years.
• EBAY has a better Gross Margin (72.11%) than 93.75% of its industry peers.

ChartMill's Evaluation of Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:EBAY has achieved a 6 out of 10:

• An Altman-Z score of 4.58 indicates that EBAY is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.58, EBAY is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
• With a decent Debt to FCF ratio value of 4.46, EBAY is doing good in the industry, outperforming 62.50% of the companies in the same industry.
• Looking at the Current ratio, with a value of 1.99, EBAY is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
• EBAY has a Quick ratio of 1.99. This is amongst the best in the industry. EBAY outperforms 87.50% of its industry peers.

Deciphering NASDAQ:EBAY's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:EBAY has earned a 4 for growth:

• Measured over the past years, EBAY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.72% on average per year.

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

Check the latest full fundamental report of EBAY for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.