Intrinsic value of eBay - EBAY

Previous Close

$34.78

  Intrinsic Value

$36.96

stock screener

  Rating & Target

hold

+6%

  Value-price divergence*

-58%

Previous close

$34.78

 
Intrinsic value

$36.96

 
Up/down potential

+6%

 
Rating

hold

 
Value-price divergence*

-58%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of EBAY stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 37.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  4.50
  3.70
  3.83
  3.95
  4.05
  4.15
  4.23
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.63
  4.67
  4.70
  4.73
  4.76
  4.78
  4.80
  4.82
  4.84
  4.86
  4.87
  4.88
  4.90
  4.91
  4.92
  4.92
  4.93
  4.94
Revenue, $m
  8,979
  9,311
  9,668
  10,049
  10,457
  10,890
  11,351
  11,840
  12,359
  12,908
  13,488
  14,101
  14,749
  15,432
  16,153
  16,912
  17,713
  18,555
  19,443
  20,377
  21,360
  22,395
  23,482
  24,627
  25,829
  27,094
  28,424
  29,821
  31,289
  32,833
  34,454
Variable operating expenses, $m
 
  6,213
  6,433
  6,669
  6,921
  7,190
  7,475
  7,778
  8,099
  8,438
  8,797
  8,727
  9,128
  9,550
  9,996
  10,466
  10,962
  11,483
  12,033
  12,611
  13,219
  13,859
  14,533
  15,241
  15,985
  16,768
  17,591
  18,455
  19,364
  20,319
  21,323
Fixed operating expenses, $m
 
  678
  694
  712
  730
  748
  767
  786
  805
  825
  846
  867
  889
  911
  934
  957
  981
  1,006
  1,031
  1,057
  1,083
  1,110
  1,138
  1,166
  1,196
  1,225
  1,256
  1,287
  1,320
  1,353
  1,386
Total operating expenses, $m
  6,654
  6,891
  7,127
  7,381
  7,651
  7,938
  8,242
  8,564
  8,904
  9,263
  9,643
  9,594
  10,017
  10,461
  10,930
  11,423
  11,943
  12,489
  13,064
  13,668
  14,302
  14,969
  15,671
  16,407
  17,181
  17,993
  18,847
  19,742
  20,684
  21,672
  22,709
Operating income, $m
  2,325
  2,421
  2,540
  2,668
  2,806
  2,953
  3,110
  3,277
  3,455
  3,644
  3,844
  4,507
  4,732
  4,970
  5,222
  5,488
  5,769
  6,066
  6,379
  6,710
  7,058
  7,425
  7,812
  8,219
  8,649
  9,101
  9,577
  10,078
  10,606
  11,161
  11,745
EBITDA, $m
  3,007
  3,041
  3,166
  3,301
  3,446
  3,601
  3,766
  3,942
  4,130
  4,329
  4,540
  4,764
  5,001
  5,251
  5,516
  5,796
  6,092
  6,404
  6,733
  7,080
  7,447
  7,833
  8,239
  8,668
  9,119
  9,594
  10,094
  10,621
  11,175
  11,758
  12,372
Interest expense (income), $m
  220
  263
  278
  295
  312
  331
  351
  372
  395
  419
  444
  471
  499
  529
  561
  594
  629
  666
  705
  746
  789
  835
  883
  933
  986
  1,041
  1,100
  1,161
  1,226
  1,294
  1,365
Earnings before tax, $m
  3,651
  2,158
  2,262
  2,374
  2,493
  2,622
  2,759
  2,905
  3,060
  3,225
  3,400
  4,036
  4,233
  4,441
  4,661
  4,894
  5,140
  5,400
  5,674
  5,963
  6,268
  6,590
  6,929
  7,286
  7,663
  8,059
  8,477
  8,917
  9,380
  9,867
  10,380
Tax expense, $m
  -3,634
  583
  611
  641
  673
  708
  745
  784
  826
  871
  918
  1,090
  1,143
  1,199
  1,259
  1,321
  1,388
  1,458
  1,532
  1,610
  1,692
  1,779
  1,871
  1,967
  2,069
  2,176
  2,289
  2,408
  2,533
  2,664
  2,803
Net income, $m
  7,266
  1,576
  1,651
  1,733
  1,820
  1,914
  2,014
  2,120
  2,234
  2,354
  2,482
  2,946
  3,090
  3,242
  3,403
  3,573
  3,752
  3,942
  4,142
  4,353
  4,576
  4,811
  5,058
  5,319
  5,594
  5,883
  6,188
  6,509
  6,847
  7,203
  7,577

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  7,130
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  23,847
  17,339
  18,003
  18,714
  19,472
  20,280
  21,138
  22,049
  23,014
  24,036
  25,117
  26,259
  27,465
  28,737
  30,079
  31,494
  32,984
  34,554
  36,207
  37,946
  39,777
  41,703
  43,729
  45,859
  48,100
  50,455
  52,930
  55,532
  58,267
  61,141
  64,160
Adjusted assets (=assets-cash), $m
  16,717
  17,339
  18,003
  18,714
  19,472
  20,280
  21,138
  22,049
  23,014
  24,036
  25,117
  26,259
  27,465
  28,737
  30,079
  31,494
  32,984
  34,554
  36,207
  37,946
  39,777
  41,703
  43,729
  45,859
  48,100
  50,455
  52,930
  55,532
  58,267
  61,141
  64,160
Revenue / Adjusted assets
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
  0.537
Average production assets, $m
  1,631
  1,695
  1,760
  1,829
  1,903
  1,982
  2,066
  2,155
  2,249
  2,349
  2,455
  2,566
  2,684
  2,809
  2,940
  3,078
  3,224
  3,377
  3,539
  3,709
  3,888
  4,076
  4,274
  4,482
  4,701
  4,931
  5,173
  5,427
  5,695
  5,976
  6,271
Working capital, $m
  5,028
  -680
  -706
  -734
  -763
  -795
  -829
  -864
  -902
  -942
  -985
  -1,029
  -1,077
  -1,127
  -1,179
  -1,235
  -1,293
  -1,355
  -1,419
  -1,488
  -1,559
  -1,635
  -1,714
  -1,798
  -1,886
  -1,978
  -2,075
  -2,177
  -2,284
  -2,397
  -2,515
Total debt, $m
  8,960
  7,946
  8,416
  8,920
  9,458
  10,030
  10,639
  11,285
  11,969
  12,694
  13,460
  14,270
  15,125
  16,027
  16,978
  17,981
  19,038
  20,151
  21,323
  22,556
  23,854
  25,220
  26,656
  28,166
  29,755
  31,424
  33,180
  35,024
  36,963
  39,001
  41,142
Total liabilities, $m
  13,308
  12,294
  12,764
  13,268
  13,806
  14,378
  14,987
  15,633
  16,317
  17,042
  17,808
  18,618
  19,473
  20,375
  21,326
  22,329
  23,386
  24,499
  25,671
  26,904
  28,202
  29,568
  31,004
  32,514
  34,103
  35,772
  37,528
  39,372
  41,311
  43,349
  45,490
Total equity, $m
  10,539
  5,046
  5,239
  5,446
  5,666
  5,901
  6,151
  6,416
  6,697
  6,995
  7,309
  7,641
  7,992
  8,363
  8,753
  9,165
  9,598
  10,055
  10,536
  11,042
  11,575
  12,136
  12,725
  13,345
  13,997
  14,682
  15,403
  16,160
  16,956
  17,792
  18,671
Total liabilities and equity, $m
  23,847
  17,340
  18,003
  18,714
  19,472
  20,279
  21,138
  22,049
  23,014
  24,037
  25,117
  26,259
  27,465
  28,738
  30,079
  31,494
  32,984
  34,554
  36,207
  37,946
  39,777
  41,704
  43,729
  45,859
  48,100
  50,454
  52,931
  55,532
  58,267
  61,141
  64,161
Debt-to-equity ratio
  0.850
  1.570
  1.610
  1.640
  1.670
  1.700
  1.730
  1.760
  1.790
  1.810
  1.840
  1.870
  1.890
  1.920
  1.940
  1.960
  1.980
  2.000
  2.020
  2.040
  2.060
  2.080
  2.090
  2.110
  2.130
  2.140
  2.150
  2.170
  2.180
  2.190
  2.200
Adjusted equity ratio
  0.204
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  7,266
  1,576
  1,651
  1,733
  1,820
  1,914
  2,014
  2,120
  2,234
  2,354
  2,482
  2,946
  3,090
  3,242
  3,403
  3,573
  3,752
  3,942
  4,142
  4,353
  4,576
  4,811
  5,058
  5,319
  5,594
  5,883
  6,188
  6,509
  6,847
  7,203
  7,577
Depreciation, amort., depletion, $m
  682
  620
  626
  633
  640
  648
  657
  666
  675
  685
  696
  257
  268
  281
  294
  308
  322
  338
  354
  371
  389
  408
  427
  448
  470
  493
  517
  543
  569
  598
  627
Funds from operations, $m
  2,846
  2,195
  2,277
  2,366
  2,461
  2,562
  2,670
  2,786
  2,909
  3,039
  3,178
  3,203
  3,358
  3,523
  3,697
  3,881
  4,075
  4,280
  4,496
  4,724
  4,965
  5,218
  5,486
  5,767
  6,064
  6,377
  6,706
  7,052
  7,417
  7,800
  8,204
Change in working capital, $m
  20
  -24
  -26
  -28
  -30
  -32
  -34
  -36
  -38
  -40
  -42
  -45
  -47
  -50
  -53
  -55
  -58
  -62
  -65
  -68
  -72
  -76
  -79
  -84
  -88
  -92
  -97
  -102
  -107
  -113
  -118
Cash from operations, $m
  2,826
  2,219
  2,303
  2,394
  2,490
  2,594
  2,704
  2,822
  2,947
  3,079
  3,220
  3,248
  3,406
  3,573
  3,749
  3,936
  4,133
  4,341
  4,561
  4,792
  5,036
  5,294
  5,565
  5,851
  6,152
  6,469
  6,803
  7,154
  7,524
  7,913
  8,323
Maintenance CAPEX, $m
  0
  -163
  -169
  -176
  -183
  -190
  -198
  -207
  -215
  -225
  -235
  -245
  -257
  -268
  -281
  -294
  -308
  -322
  -338
  -354
  -371
  -389
  -408
  -427
  -448
  -470
  -493
  -517
  -543
  -569
  -598
New CAPEX, $m
  -626
  -64
  -65
  -69
  -74
  -79
  -84
  -89
  -94
  -100
  -106
  -112
  -118
  -124
  -131
  -138
  -146
  -153
  -162
  -170
  -179
  -188
  -198
  -208
  -219
  -230
  -242
  -254
  -267
  -281
  -295
Cash from investing activities, $m
  -2,008
  -227
  -234
  -245
  -257
  -269
  -282
  -296
  -309
  -325
  -341
  -357
  -375
  -392
  -412
  -432
  -454
  -475
  -500
  -524
  -550
  -577
  -606
  -635
  -667
  -700
  -735
  -771
  -810
  -850
  -893
Free cash flow, $m
  818
  1,993
  2,069
  2,148
  2,233
  2,325
  2,422
  2,526
  2,637
  2,754
  2,879
  2,891
  3,031
  3,180
  3,337
  3,504
  3,680
  3,865
  4,061
  4,268
  4,487
  4,717
  4,960
  5,215
  5,485
  5,769
  6,068
  6,382
  6,714
  7,063
  7,430
Issuance/(repayment) of debt, $m
  2,196
  437
  471
  504
  538
  573
  609
  646
  684
  725
  766
  810
  855
  902
  951
  1,003
  1,057
  1,113
  1,172
  1,233
  1,298
  1,366
  1,436
  1,511
  1,588
  1,670
  1,755
  1,845
  1,939
  2,037
  2,141
Issuance/(repurchase) of shares, $m
  -2,841
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -744
  437
  471
  504
  538
  573
  609
  646
  684
  725
  766
  810
  855
  902
  951
  1,003
  1,057
  1,113
  1,172
  1,233
  1,298
  1,366
  1,436
  1,511
  1,588
  1,670
  1,755
  1,845
  1,939
  2,037
  2,141
Total cash flow (excl. dividends), $m
  -16
  2,429
  2,540
  2,652
  2,771
  2,897
  3,031
  3,172
  3,321
  3,479
  3,646
  3,700
  3,886
  4,082
  4,289
  4,507
  4,736
  4,978
  5,233
  5,502
  5,785
  6,082
  6,396
  6,726
  7,073
  7,438
  7,823
  8,227
  8,653
  9,100
  9,571
Retained Cash Flow (-), $m
  -3,963
  -186
  -193
  -207
  -221
  -235
  -250
  -265
  -281
  -297
  -315
  -332
  -351
  -370
  -390
  -412
  -434
  -457
  -481
  -506
  -533
  -560
  -590
  -620
  -652
  -685
  -720
  -757
  -796
  -836
  -879
Prev. year cash balance distribution, $m
 
  5,679
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  7,922
  2,347
  2,445
  2,550
  2,662
  2,781
  2,907
  3,040
  3,182
  3,331
  3,368
  3,535
  3,712
  3,898
  4,095
  4,303
  4,522
  4,752
  4,996
  5,252
  5,522
  5,806
  6,106
  6,421
  6,753
  7,102
  7,470
  7,857
  8,264
  8,692
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  7,596
  2,148
  2,128
  2,100
  2,063
  2,018
  1,964
  1,900
  1,828
  1,746
  1,599
  1,509
  1,411
  1,309
  1,202
  1,093
  984
  875
  769
  667
  571
  482
  400
  327
  263
  207
  160
  122
  90
  65
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

eBay Inc. operates commerce platforms that connect various buyers and sellers worldwide. Its platforms enable sellers to organize and offer their inventory for sale; and buyers to find and purchase it virtually. The company’s Marketplace platforms include its online marketplace at ebay.com and the eBay mobile apps; and StubHub platforms comprise its online ticket platform at stubhub.com, and the StubHub mobile apps and Ticketbis platforms that connect fans with their favorite sporting events, shows, and artists, as well as enables them to buy and sell tickets. Its Classifieds platforms include a collection of brands, such as mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen, and others, which offer online classifieds to enable people find whatever they are looking for in their local communities. The company’s platforms enable users to find, buy, sell, and pay for items through various online, mobile, and offline channels that include retailers, distributors, liquidators, import and export companies, auctioneers, catalog and mail-order companies, classifieds, directories, search engines, commerce participants, shopping channels, and networks. eBay Inc. was founded in 1995 and is headquartered in San Jose, California.

FINANCIAL RATIOS  of  eBay (EBAY)

Valuation Ratios
P/E Ratio 5.2
Price to Sales 4.2
Price to Book 3.6
Price to Tangible Book
Price to Cash Flow 13.4
Price to Free Cash Flow 17.2
Growth Rates
Sales Growth Rate 4.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -6.3%
Cap. Spend. - 3 Yr. Gr. Rate -1.6%
Financial Strength
Quick Ratio 5
Current Ratio 0.1
LT Debt to Equity 71.2%
Total Debt to Equity 85%
Interest Coverage 18
Management Effectiveness
Return On Assets 37%
Ret/ On Assets - 3 Yr. Avg. 14.3%
Return On Total Capital 44.3%
Ret/ On T. Cap. - 3 Yr. Avg. 17.6%
Return On Equity 84.9%
Return On Equity - 3 Yr. Avg. 32.7%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 77.6%
Gross Margin - 3 Yr. Avg. 79.4%
EBITDA Margin 50.7%
EBITDA Margin - 3 Yr. Avg. 42.1%
Operating Margin 25.9%
Oper. Margin - 3 Yr. Avg. 26.5%
Pre-Tax Margin 40.7%
Pre-Tax Margin - 3 Yr. Avg. 32.4%
Net Profit Margin 80.9%
Net Profit Margin - 3 Yr. Avg. 33.8%
Effective Tax Rate -99.5%
Eff/ Tax Rate - 3 Yr. Avg. 18%
Payout Ratio 0%

EBAY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the EBAY stock intrinsic value calculation we used $8979 million for the last fiscal year's total revenue generated by eBay. The default revenue input number comes from 2016 income statement of eBay. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our EBAY stock valuation model: a) initial revenue growth rate of 3.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for EBAY is calculated based on our internal credit rating of eBay, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of eBay.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of EBAY stock the variable cost ratio is equal to 66.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $661 million in the base year in the intrinsic value calculation for EBAY stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for eBay.

Corporate tax rate of 27% is the nominal tax rate for eBay. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the EBAY stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for EBAY are equal to 18.2%.

Life of production assets of 10 years is the average useful life of capital assets used in eBay operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for EBAY is equal to -7.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $10539 million for eBay - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 1074.99 million for eBay is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of eBay at the current share price and the inputted number of shares is $37.4 billion.

RELATED COMPANIES Price Int.Val. Rating
AMZN Amazon.com 958.47 870.28  hold
MELI MercadoLibre 236.14 2,112.02  str.buy
GOOGL Alphabet Cl A 926.18 981.76  hold
BABA Alibaba Group 167.50 1,178.21  str.buy
MSFT Microsoft 72.49 47.21  sell
QVCA Liberty Intera 21.16 8.47  str.sell
YHOO Yahoo! 52.58 8.04  str.sell
ETSY Etsy 15.59 11.84  sell

COMPANY NEWS

▶ eBay Announces Changes to its Regional Leadership Team   [Aug-21-17 07:00AM  PR Newswire]
▶ Facebook Is Hungry to Change How Its Main App Is Used   [Aug-18-17 09:50PM  TheStreet.com]
▶ Better Buy: Shopify Inc. vs. eBay Inc.   [07:49PM  Motley Fool]
▶ 3 Stocks That Look Just Like eBay in 1998   [Aug-16-17 09:35PM  Motley Fool]
▶ The Key to Increasing Diversity in the Tech Industry   [12:20AM  The Wall Street Journal]
▶ The Key to Increasing Diversity in the Tech Industry   [Aug-13-17 10:04PM  The Wall Street Journal]
▶ FBI: ISIS used eBay to transfer money into U.S.   [Aug-11-17 03:02PM  San Jose Mercury News]
▶ [$$] FBI Says ISIS Used eBay to Send Terror Cash to U.S.   [12:46AM  The Wall Street Journal]
▶ [$$] FBI Says ISIS Used eBay To Send Terror Cash to U.S.   [Aug-10-17 08:13PM  The Wall Street Journal]
▶ ETFs with exposure to eBay, Inc. : August 7, 2017   [Aug-07-17 04:28PM  Capital Cube]
▶ 3 Things eBay Management Wants You to Know   [Aug-06-17 05:33PM  Motley Fool]
▶ eBay Breaks the Mold in Tax Protest   [07:39AM  Market Realist]
▶ Bitcoin Exchange Had Too Many Bitcoins   [Aug-02-17 03:23PM  Bloomberg]
▶ Whats Propelling PayPal?   [09:10AM  Market Realist]
▶ Forget eBay Inc.: These 3 Stocks Are Better Buys   [Aug-01-17 06:33PM  Motley Fool]
▶ 3 Reasons to Buy Shopify Inc (US) (SHOP) Stock   [Jul-31-17 11:45AM  InvestorPlace]
▶ An Attractive Choice Among ESG Funds   [12:03AM  Morningstar]
▶ The Top Tesla Shareholders (TSLA)   [Jul-28-17 08:40AM  Investopedia]
▶ MercadoLibre Is Beating Amazon at Its Own Game   [Jul-26-17 07:36PM  Motley Fool]
▶ Top Analyst Reports for Oracle, Pfizer & Abbott   [Jul-25-17 05:53PM  Zacks]
▶ EBay marketplace continues to show improvement   [Jul-24-17 12:30PM  CNBC Videos]
▶ Company News for July 24, 2017   [10:53AM  Zacks]
▶ Ignore eBay Inc.: Here Are 2 Better Stocks   [Jul-22-17 03:17PM  Motley Fool]
▶ eBay, Inc. Offers a Decent Quarter   [05:19PM  Motley Fool]
▶ Here Comes the eBay Plunge   [04:14PM  TheStreet.com]
▶ Dow Is A Drag But These Top Stocks Are Enjoying Big Gains   [01:03PM  Investor's Business Daily]
▶ Story Stocks from Briefing.com   [11:42AM  Briefing.com]
▶ 5 Reasons To Remain Buyers Of eBay   [11:38AM  Benzinga]
▶ EBay meets 2Q profit forecasts   [Jul-20-17 09:31PM  Associated Press]
Stock chart of EBAY Financial statements of EBAY
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.