EBAY INC (EBAY) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:EBAY • US2786421030

91.22 USD
-3.19 (-3.38%)
At close: Jan 30, 2026
91.5 USD
+0.28 (+0.31%)
After Hours: 1/30/2026, 8:00:02 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to EBAY. EBAY was compared to 30 industry peers in the Broadline Retail industry. While EBAY has a great profitability rating, there are quite some concerns on its financial health. EBAY has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • EBAY had positive earnings in the past year.
  • EBAY had a positive operating cash flow in the past year.
  • Of the past 5 years EBAY 4 years were profitable.
  • Each year in the past 5 years EBAY had a positive operating cash flow.
EBAY Yearly Net Income VS EBIT VS OCF VS FCFEBAY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B

1.2 Ratios

  • With an excellent Return On Assets value of 12.26%, EBAY belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
  • EBAY's Return On Equity of 46.24% is amongst the best of the industry. EBAY outperforms 100.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 16.87%, EBAY belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
  • EBAY had an Average Return On Invested Capital over the past 3 years of 12.79%. This is above the industry average of 9.28%.
  • The 3 year average ROIC (12.79%) for EBAY is below the current ROIC(16.87%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 12.26%
ROE 46.24%
ROIC 16.87%
ROA(3y)5.64%
ROA(5y)19.47%
ROE(3y)18.98%
ROE(5y)71.05%
ROIC(3y)12.79%
ROIC(5y)13.31%
EBAY Yearly ROA, ROE, ROICEBAY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 100 150

1.3 Margins

  • Looking at the Profit Margin, with a value of 20.37%, EBAY belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
  • EBAY's Profit Margin has been stable in the last couple of years.
  • EBAY has a Operating Margin of 23.27%. This is amongst the best in the industry. EBAY outperforms 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of EBAY has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 71.64%, EBAY belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
  • EBAY's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 23.27%
PM (TTM) 20.37%
GM 71.64%
OM growth 3Y-11.32%
OM growth 5Y0.56%
PM growth 3Y-47.22%
PM growth 5Y-1.47%
GM growth 3Y-1.16%
GM growth 5Y-0.89%
EBAY Yearly Profit, Operating, Gross MarginsEBAY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 100

3

2. Health

2.1 Basic Checks

  • EBAY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • EBAY has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, EBAY has less shares outstanding
  • EBAY has a worse debt/assets ratio than last year.
EBAY Yearly Shares OutstandingEBAY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
EBAY Yearly Total Debt VS Total AssetsEBAY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

  • EBAY has a debt to FCF ratio of 4.42. This is a neutral value as EBAY would need 4.42 years to pay back of all of its debts.
  • The Debt to FCF ratio of EBAY (4.42) is better than 63.33% of its industry peers.
  • EBAY has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
  • EBAY's Debt to Equity ratio of 1.06 is on the low side compared to the rest of the industry. EBAY is outperformed by 76.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 4.42
Altman-Z N/A
ROIC/WACC1.97
WACC8.55%
EBAY Yearly LT Debt VS Equity VS FCFEBAY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

  • EBAY has a Current Ratio of 0.92. This is a bad value and indicates that EBAY is not financially healthy enough and could expect problems in meeting its short term obligations.
  • EBAY has a Current ratio of 0.92. This is amonst the worse of the industry: EBAY underperforms 90.00% of its industry peers.
  • EBAY has a Quick Ratio of 0.92. This is a bad value and indicates that EBAY is not financially healthy enough and could expect problems in meeting its short term obligations.
  • EBAY has a Quick ratio of 0.92. This is in the lower half of the industry: EBAY underperforms 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 0.92
Quick Ratio 0.92
EBAY Yearly Current Assets VS Current LiabilitesEBAY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 14.29% over the past year.
  • EBAY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.47% yearly.
  • EBAY shows a small growth in Revenue. In the last year, the Revenue has grown by 4.36%.
  • The Revenue has been growing slightly by 3.55% on average over the past years.
EPS 1Y (TTM)14.29%
EPS 3Y6.51%
EPS 5Y11.47%
EPS Q2Q%14.29%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%9.47%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.40% on average over the next years. This is quite good.
  • EBAY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.13% yearly.
EPS Next Y14.62%
EPS Next 2Y10.74%
EPS Next 3Y10.47%
EPS Next 5Y10.4%
Revenue Next Year7.16%
Revenue Next 2Y5.93%
Revenue Next 3Y5.63%
Revenue Next 5Y5.13%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
EBAY Yearly Revenue VS EstimatesEBAY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
EBAY Yearly EPS VS EstimatesEBAY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8

5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 17.02 indicates a rather expensive valuation of EBAY.
  • EBAY's Price/Earnings ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 76.67% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 28.30, EBAY is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 15.27 indicates a correct valuation of EBAY.
  • Based on the Price/Forward Earnings ratio, EBAY is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
  • EBAY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.02
Fwd PE 15.27
EBAY Price Earnings VS Forward Price EarningsEBAY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as EBAY.
  • EBAY's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 26.98
EV/EBITDA 15.74
EBAY Per share dataEBAY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of EBAY may justify a higher PE ratio.
PEG (NY)1.16
PEG (5Y)1.48
EPS Next 2Y10.74%
EPS Next 3Y10.47%

5

5. Dividend

5.1 Amount

  • EBAY has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.35, EBAY pays a bit more dividend than its industry peers.
  • EBAY's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.24%

5.2 History

  • The dividend of EBAY is nicely growing with an annual growth rate of 14.31%!
  • EBAY has been paying a dividend for over 5 years, so it has already some track record.
  • As EBAY did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)14.31%
Div Incr Years5
Div Non Decr Years5
EBAY Yearly Dividends per shareEBAY Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 24.20% of the earnings are spent on dividend by EBAY. This is a low number and sustainable payout ratio.
  • The dividend of EBAY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.2%
EPS Next 2Y10.74%
EPS Next 3Y10.47%
EBAY Yearly Income VS Free CF VS DividendEBAY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B
EBAY Dividend Payout.EBAY Dividend Payout, showing the Payout Ratio.EBAY Dividend Payout.PayoutRetained Earnings

EBAY INC / EBAY FAQ

Can you provide the ChartMill fundamental rating for EBAY INC?

ChartMill assigns a fundamental rating of 5 / 10 to EBAY.


What is the valuation status for EBAY stock?

ChartMill assigns a valuation rating of 5 / 10 to EBAY INC (EBAY). This can be considered as Fairly Valued.


What is the profitability of EBAY stock?

EBAY INC (EBAY) has a profitability rating of 8 / 10.


What are the PE and PB ratios of EBAY INC (EBAY) stock?

The Price/Earnings (PE) ratio for EBAY INC (EBAY) is 17.02 and the Price/Book (PB) ratio is 8.74.


Can you provide the financial health for EBAY stock?

The financial health rating of EBAY INC (EBAY) is 3 / 10.