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eBay Inc EBAY

Morningstar Rating
$48.05 +0.77 (1.63%)
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Company Report

EBay Earnings: Turnaround Narrative Gains Steam With Constructive Outlook; Shares Slightly Cheap

We're fans of narrow-moat eBay's focus category and advertising strategies, which appear set to drive gross merchandise volume growth in 2024 after years of macro-driven declines. While our long-term forecasts for 23%-24% operating margin and 4%-5% revenue growth are unchanged, we plan to raise our $49 fair value estimate by a mid-single-digit percentage to reflect quarterly outperformance, time value, and the planned sale of $2 billion of the company's Adevinta stake in 2024. The shares look slightly undervalued even after a rise in aftermarket trading.

Price vs Fair Value

EBAY is trading at a 6% discount.
Price
$48.05
Fair Value
$13.00
Uncertainty
High
1-Star Price
$41.61
5-Star Price
$76.80
Economic Moat
Vpzztn
Capital Allocation
Mwlrdxzzl

Bulls Say, Bears Say

Bulls

The firm's managed payments rollout was executed seamlessly, and offers optionality for auxiliary financial services down the line.

Bears

The firm's lack of proprietary logistics operations and first-party inventory will likely see eBay continue to donate market share in the e-commerce channel more broadly.

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News

Trading Information

Previous Close Price
$47.28
Day Range
$47.0648.30
52-Week Range
$37.1749.48
Bid/Ask
$47.90 / $48.07
Market Cap
$24.94 Bil
Volume/Avg
8.7 Mil / 6.9 Mil

Key Statistics

Price/Earnings (Normalized)
11.33
Price/Sales
2.53
Dividend Yield (Trailing)
2.08%
Dividend Yield (Forward)
2.25%
Total Yield
7.37%

Company Profile

EBay operates one of the largest e-commerce marketplaces in the world, with $73 billion in 2023 gross merchandise volume, or GMV, rendering the firm a top 10 global e-commerce company. The company generates revenue from listing fees, advertising, revenue-sharing arrangements with service providers, and managed payments, with its platform connecting more than 130 million buyers and roughly 20 million sellers across almost 190 global markets at the end of 2023. eBay generates just north of 50% of its GMV in international markets, with a large presence in the U.K., Germany, and Australia.
Sector
Consumer Cyclical
Industry
Internet Retail
Stock Style Box
Mid Value
Total Number of Employees
11,600

Competitors

Valuation

Metric
EBAY
MELI
BABA
Price/Earnings (Normalized)
11.3378.508.42
Price/Book Value
3.9026.621.31
Price/Sales
2.535.681.46
Price/Cash Flow
10.1424.597.13
Price/Earnings
EBAY
MELI
BABA

Financial Strength

Metric
EBAY
MELI
BABA
Quick Ratio
2.260.911.71
Current Ratio
2.441.271.80
Interest Coverage
14.323.2093.02
Quick Ratio
EBAY
MELI
BABA

Profitability

Metric
EBAY
MELI
BABA
Return on Assets (Normalized)
10.91%9.21%8.98%
Return on Equity (Normalized)
40.21%59.40%15.96%
Return on Invested Capital (Normalized)
16.36%15.38%12.33%
Return on Assets
EBAY
MELI
BABA
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