Despite its impressive fundamentals, NASDAQ:EBAY remains undervalued.

Last update: Mar 6, 2024

Discover EBAY INC (NASDAQ:EBAY)—an undervalued stock our stock screener has picked out. NASDAQ:EBAY demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Examination for 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:

A Price/Earnings ratio of 11.81 indicates a reasonable valuation of EBAY.
Based on the Price/Earnings ratio, EBAY is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of EBAY to the average of the S&P500 Index (25.65), we can say EBAY is valued rather cheaply.
The Price/Forward Earnings ratio is 10.52, which indicates a very decent valuation of EBAY.
EBAY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 78.79% of the companies in the same industry.
EBAY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.73.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EBAY indicates a somewhat cheap valuation: EBAY is cheaper than 78.79% of the companies listed in the same industry.
EBAY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 72.73% 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.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:EBAY, the assigned 8 is noteworthy 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.
With an excellent Return On Equity value of 43.26%, EBAY belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
The Return On Invested Capital of EBAY (10.26%) is better than 78.79% of its industry peers.
The Profit Margin of EBAY (27.36%) is better than 100.00% of its industry peers.
EBAY's Operating Margin of 23.17% is amongst the best of the industry. EBAY outperforms 100.00% of its industry peers.
EBAY's Operating Margin has improved in the last couple of years.
EBAY has a better Gross Margin (71.98%) than 93.94% of its industry peers.

Health Analysis for NASDAQ:EBAY

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:EBAY has earned a 7 out of 10:

EBAY has an Altman-Z score of 4.58. This indicates that EBAY is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.58, EBAY is doing good in the industry, outperforming 75.76% of the companies in the same industry.
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.
EBAY has a Debt to FCF ratio of 3.92. This is in the better half of the industry: EBAY outperforms 63.64% of its industry peers.
A Current Ratio of 2.44 indicates that EBAY has no problem at all paying its short term obligations.
The Current ratio of EBAY (2.44) is better than 78.79% of its industry peers.
A Quick Ratio of 2.44 indicates that EBAY has no problem at all paying its short term obligations.
EBAY has a Quick ratio of 2.44. This is amongst the best in the industry. EBAY outperforms 90.91% of its industry peers.

Growth Analysis for NASDAQ:EBAY

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:

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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of EBAY

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.