Intrinsic value of eBay - EBAY

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$32.18

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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$32.18

 
Intrinsic value

$35.30

 
Up/down potential

+10%

 
Rating

hold

 
Value-price divergence* premium content

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*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 34.8

 

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
  3.10
  3.29
  3.46
  3.61
  3.75
  3.88
  3.99
  4.09
  4.18
  4.26
  4.34
  4.40
  4.46
  4.52
  4.57
  4.61
  4.65
  4.68
  4.71
  4.74
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
  4.88
  4.89
  4.90
  4.91
Revenue, $m
  8,979
  9,257
  9,562
  9,893
  10,250
  10,635
  11,048
  11,488
  11,959
  12,459
  12,990
  13,553
  14,150
  14,782
  15,449
  16,155
  16,899
  17,685
  18,513
  19,386
  20,305
  21,274
  22,293
  23,366
  24,495
  25,683
  26,932
  28,245
  29,626
  31,078
  32,604
Variable operating expenses, $m
 
  6,179
  6,368
  6,573
  6,794
  7,032
  7,287
  7,560
  7,851
  8,160
  8,489
  8,388
  8,757
  9,148
  9,561
  9,998
  10,458
  10,945
  11,457
  11,997
  12,566
  13,166
  13,797
  14,461
  15,159
  15,894
  16,667
  17,480
  18,335
  19,233
  20,178
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
  6,857
  7,062
  7,285
  7,524
  7,780
  8,054
  8,346
  8,656
  8,985
  9,335
  9,255
  9,646
  10,059
  10,495
  10,955
  11,439
  11,951
  12,488
  13,054
  13,649
  14,276
  14,935
  15,627
  16,355
  17,119
  17,923
  18,767
  19,655
  20,586
  21,564
Operating income, $m
  2,325
  2,401
  2,500
  2,609
  2,727
  2,855
  2,994
  3,143
  3,302
  3,473
  3,655
  4,298
  4,504
  4,723
  4,954
  5,200
  5,460
  5,734
  6,025
  6,332
  6,656
  6,998
  7,359
  7,739
  8,140
  8,563
  9,008
  9,478
  9,972
  10,492
  11,040
EBITDA, $m
  3,007
  3,038
  3,143
  3,259
  3,384
  3,521
  3,667
  3,825
  3,994
  4,175
  4,367
  4,572
  4,790
  5,021
  5,267
  5,526
  5,801
  6,092
  6,399
  6,724
  7,066
  7,428
  7,809
  8,212
  8,636
  9,082
  9,553
  10,049
  10,571
  11,121
  11,699
Interest expense (income), $m
  220
  263
  276
  290
  305
  321
  339
  358
  379
  400
  424
  448
  474
  502
  531
  562
  594
  629
  665
  703
  744
  786
  831
  878
  928
  980
  1,035
  1,092
  1,153
  1,217
  1,284
Earnings before tax, $m
  3,651
  2,138
  2,224
  2,319
  2,422
  2,534
  2,655
  2,784
  2,924
  3,072
  3,231
  3,850
  4,030
  4,221
  4,423
  4,638
  4,865
  5,106
  5,360
  5,628
  5,912
  6,212
  6,528
  6,861
  7,213
  7,583
  7,974
  8,385
  8,819
  9,275
  9,756
Tax expense, $m
  -3,634
  577
  601
  626
  654
  684
  717
  752
  789
  830
  872
  1,040
  1,088
  1,140
  1,194
  1,252
  1,314
  1,379
  1,447
  1,520
  1,596
  1,677
  1,762
  1,852
  1,947
  2,047
  2,153
  2,264
  2,381
  2,504
  2,634
Net income, $m
  7,266
  1,561
  1,624
  1,693
  1,768
  1,850
  1,938
  2,033
  2,134
  2,243
  2,359
  2,811
  2,942
  3,081
  3,229
  3,386
  3,552
  3,727
  3,913
  4,109
  4,316
  4,535
  4,765
  5,009
  5,265
  5,536
  5,821
  6,121
  6,438
  6,771
  7,122

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
  17,239
  17,806
  18,422
  19,088
  19,805
  20,573
  21,394
  22,269
  23,200
  24,190
  25,239
  26,350
  27,526
  28,770
  30,083
  31,470
  32,932
  34,475
  36,100
  37,813
  39,616
  41,514
  43,512
  45,615
  47,826
  50,152
  52,598
  55,170
  57,874
  60,716
Adjusted assets (=assets-cash), $m
  16,717
  17,239
  17,806
  18,422
  19,088
  19,805
  20,573
  21,394
  22,269
  23,200
  24,190
  25,239
  26,350
  27,526
  28,770
  30,083
  31,470
  32,932
  34,475
  36,100
  37,813
  39,616
  41,514
  43,512
  45,615
  47,826
  50,152
  52,598
  55,170
  57,874
  60,716
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
  1,685
  1,740
  1,800
  1,866
  1,936
  2,011
  2,091
  2,176
  2,267
  2,364
  2,467
  2,575
  2,690
  2,812
  2,940
  3,076
  3,219
  3,369
  3,528
  3,696
  3,872
  4,057
  4,253
  4,458
  4,674
  4,902
  5,141
  5,392
  5,656
  5,934
Working capital, $m
  5,028
  -676
  -698
  -722
  -748
  -776
  -806
  -839
  -873
  -909
  -948
  -989
  -1,033
  -1,079
  -1,128
  -1,179
  -1,234
  -1,291
  -1,351
  -1,415
  -1,482
  -1,553
  -1,627
  -1,706
  -1,788
  -1,875
  -1,966
  -2,062
  -2,163
  -2,269
  -2,380
Total debt, $m
  8,960
  7,874
  8,277
  8,714
  9,186
  9,694
  10,238
  10,820
  11,441
  12,101
  12,802
  13,546
  14,334
  15,168
  16,050
  16,981
  17,964
  19,001
  20,095
  21,247
  22,461
  23,740
  25,086
  26,502
  27,993
  29,561
  31,210
  32,944
  34,768
  36,684
  38,699
Total liabilities, $m
  13,308
  12,222
  12,625
  13,062
  13,534
  14,042
  14,586
  15,168
  15,789
  16,449
  17,150
  17,894
  18,682
  19,516
  20,398
  21,329
  22,312
  23,349
  24,443
  25,595
  26,809
  28,088
  29,434
  30,850
  32,341
  33,909
  35,558
  37,292
  39,116
  41,032
  43,047
Total equity, $m
  10,539
  5,017
  5,182
  5,361
  5,555
  5,763
  5,987
  6,226
  6,480
  6,751
  7,039
  7,345
  7,668
  8,010
  8,372
  8,754
  9,158
  9,583
  10,032
  10,505
  11,003
  11,528
  12,081
  12,662
  13,274
  13,917
  14,594
  15,306
  16,055
  16,841
  17,668
Total liabilities and equity, $m
  23,847
  17,239
  17,807
  18,423
  19,089
  19,805
  20,573
  21,394
  22,269
  23,200
  24,189
  25,239
  26,350
  27,526
  28,770
  30,083
  31,470
  32,932
  34,475
  36,100
  37,812
  39,616
  41,515
  43,512
  45,615
  47,826
  50,152
  52,598
  55,171
  57,873
  60,715
Debt-to-equity ratio
  0.850
  1.570
  1.600
  1.630
  1.650
  1.680
  1.710
  1.740
  1.770
  1.790
  1.820
  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
  2.120
  2.140
  2.150
  2.170
  2.180
  2.190
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
  1,561
  1,624
  1,693
  1,768
  1,850
  1,938
  2,033
  2,134
  2,243
  2,359
  2,811
  2,942
  3,081
  3,229
  3,386
  3,552
  3,727
  3,913
  4,109
  4,316
  4,535
  4,765
  5,009
  5,265
  5,536
  5,821
  6,121
  6,438
  6,771
  7,122
Depreciation, amort., depletion, $m
  682
  637
  643
  650
  657
  665
  674
  682
  692
  702
  713
  274
  286
  299
  312
  327
  342
  358
  374
  392
  411
  430
  451
  473
  495
  519
  545
  571
  599
  628
  659
Funds from operations, $m
  2,846
  2,198
  2,267
  2,343
  2,425
  2,515
  2,611
  2,715
  2,826
  2,945
  3,071
  3,085
  3,228
  3,380
  3,541
  3,712
  3,893
  4,085
  4,287
  4,501
  4,726
  4,965
  5,216
  5,481
  5,761
  6,055
  6,365
  6,692
  7,037
  7,399
  7,781
Change in working capital, $m
  20
  -20
  -22
  -24
  -26
  -28
  -30
  -32
  -34
  -37
  -39
  -41
  -44
  -46
  -49
  -51
  -54
  -57
  -60
  -64
  -67
  -71
  -74
  -78
  -82
  -87
  -91
  -96
  -101
  -106
  -111
Cash from operations, $m
  2,826
  2,205
  2,289
  2,367
  2,452
  2,543
  2,642
  2,747
  2,860
  2,981
  3,110
  3,126
  3,272
  3,426
  3,590
  3,764
  3,948
  4,142
  4,348
  4,565
  4,794
  5,035
  5,290
  5,559
  5,843
  6,142
  6,457
  6,788
  7,138
  7,505
  7,893
Maintenance CAPEX, $m
  0
  -181
  -187
  -193
  -200
  -207
  -215
  -223
  -232
  -242
  -252
  -263
  -274
  -286
  -299
  -312
  -327
  -342
  -358
  -374
  -392
  -411
  -430
  -451
  -473
  -495
  -519
  -545
  -571
  -599
  -628
New CAPEX, $m
  -626
  -54
  -55
  -60
  -65
  -70
  -75
  -80
  -86
  -91
  -97
  -103
  -109
  -115
  -122
  -128
  -136
  -143
  -151
  -159
  -167
  -176
  -186
  -195
  -205
  -216
  -227
  -239
  -251
  -264
  -278
Cash from investing activities, $m
  -2,008
  -235
  -242
  -253
  -265
  -277
  -290
  -303
  -318
  -333
  -349
  -366
  -383
  -401
  -421
  -440
  -463
  -485
  -509
  -533
  -559
  -587
  -616
  -646
  -678
  -711
  -746
  -784
  -822
  -863
  -906
Free cash flow, $m
  818
  1,970
  2,047
  2,113
  2,186
  2,266
  2,351
  2,444
  2,543
  2,648
  2,762
  2,761
  2,889
  3,025
  3,170
  3,323
  3,485
  3,657
  3,839
  4,031
  4,234
  4,449
  4,675
  4,913
  5,165
  5,430
  5,710
  6,005
  6,315
  6,642
  6,986
Issuance/(repayment) of debt, $m
  2,196
  365
  402
  437
  472
  508
  545
  582
  621
  660
  701
  744
  788
  834
  882
  931
  983
  1,037
  1,093
  1,152
  1,214
  1,279
  1,346
  1,417
  1,491
  1,568
  1,649
  1,734
  1,823
  1,917
  2,015
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
  365
  402
  437
  472
  508
  545
  582
  621
  660
  701
  744
  788
  834
  882
  931
  983
  1,037
  1,093
  1,152
  1,214
  1,279
  1,346
  1,417
  1,491
  1,568
  1,649
  1,734
  1,823
  1,917
  2,015
Total cash flow (excl. dividends), $m
  -16
  2,336
  2,449
  2,550
  2,659
  2,774
  2,896
  3,026
  3,163
  3,309
  3,463
  3,505
  3,677
  3,859
  4,051
  4,254
  4,469
  4,694
  4,933
  5,184
  5,448
  5,727
  6,021
  6,330
  6,656
  6,998
  7,359
  7,739
  8,138
  8,559
  9,001
Retained Cash Flow (-), $m
  -3,963
  -157
  -165
  -179
  -194
  -208
  -224
  -239
  -255
  -271
  -288
  -305
  -323
  -342
  -362
  -382
  -403
  -426
  -449
  -473
  -498
  -525
  -552
  -581
  -612
  -644
  -677
  -712
  -748
  -787
  -827
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
 
  7,858
  2,284
  2,371
  2,465
  2,565
  2,672
  2,787
  2,908
  3,038
  3,175
  3,199
  3,353
  3,517
  3,689
  3,872
  4,065
  4,269
  4,484
  4,711
  4,950
  5,202
  5,468
  5,749
  6,044
  6,355
  6,682
  7,027
  7,390
  7,772
  8,174
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
 
  7,534
  2,091
  2,063
  2,030
  1,988
  1,939
  1,883
  1,818
  1,745
  1,665
  1,519
  1,431
  1,337
  1,239
  1,137
  1,033
  929
  826
  725
  629
  538
  454
  377
  308
  247
  195
  151
  114
  85
  62
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 4.8
Price to Sales 3.9
Price to Book 3.3
Price to Tangible Book
Price to Cash Flow 12.4
Price to Free Cash Flow 15.9
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 3.1% 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 9 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 1082.81 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 $34.8 billion.


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COMPANY NEWS

▶ Analysts See 250 Million Apple iPhone Shipments, Amazon Stock At 1,000   [Apr-20-17 04:39PM  Investor's Business Daily]
▶ [$$] EBay Results Beat Expectations   [11:27AM  The Wall Street Journal]
▶ Cramer's Stop Trading: DIS & EBAY   [09:55AM  CNBC Videos]
▶ Story Stocks from Briefing.com   [09:00AM  Briefing.com]
▶ Stocks Slide With Oil Prices   [12:39AM  The Wall Street Journal]
▶ Stock Futures Lean Higher: Can Dow Find Support?   [12:31AM  Investor's Business Daily]
▶ eBay Inc. Delivers Another Solid Quarter   [Apr-19-17 08:16PM  Motley Fool]
▶ Amazon vs eBay: Which should you buy?   [06:24PM  CNBC Videos]
▶ EBay, American Express, Qualcomm, CSX Move On Late Earnings   [06:08PM  Investor's Business Daily]
▶ EBay Delivers Mixed Earnings   [05:03PM  Benzinga]
▶ EBay Meets Revenue Forecast, Beats On Earnings   [05:00PM  Investor's Business Daily]
▶ eBay Stock Tumbling After Latest Earnings   [04:36PM  TheStreet.com]
▶ Ebay Q1 GMV $20.9B   [04:35PM  CNBC Videos]
▶ EBay tops Street 1Q forecasts   [04:34PM  Associated Press]
▶ EBay Meets Revenue Forecast, Beats On Earnings   [04:30PM  Investor's Business Daily]
▶ A Fine Rookie Year for This Retail ETF   [01:14PM  Investopedia]
▶ S&P 500 Stabilizes as Investors Parse Earnings Reports   [12:46PM  The Wall Street Journal]
▶ [$$] EBay Earnings: What to Watch   [08:00AM  The Wall Street Journal]
▶ What To Expect When eBay Reports First-Quarter Earnings   [Apr-18-17 04:15PM  Investor's Business Daily]
▶ 4 Top Earnings to Look For on Wednesday   [01:10PM  24/7 Wall St.]
▶ What to Watch When eBay Reports Earnings   [Apr-17-17 08:20PM  Motley Fool]
▶ This Week In Tech Stocks   [01:07PM  Zacks]
▶ 7 Key Earnings Expected This Coming Week   [Apr-15-17 09:45AM  24/7 Wall St.]
▶ Competition Heats Up in This Massive E-Commerce Market   [Apr-14-17 01:11PM  Motley Fool]
▶ Aspiring tech prodigy tries to re-route self-driving cars   [Apr-13-17 04:19PM  Associated Press]
▶ More bad news for brick-and-mortar retail: Teenagers' changing spending habits   [Apr-12-17 04:54PM  American City Business Journals]
▶ Bulls bid on eBay & one energy name   [01:40PM  CNBC Videos]
▶ The Best Dividend Stock in E-Commerce   [Apr-08-17 06:21PM  Motley Fool]
▶ 11 Worst Tech Mergers and Acquisitions Ever   [Apr-07-17 01:52PM  Insider Monkey]
▶ Why Shopify is a Great Growth Stock   [Apr-04-17 06:23PM  TheStreet.com]
▶ [$$] How to bid successfully at an auction   [12:00AM  at Financial Times]
▶ Who Will Win This $119 Billion E-Commerce War?   [Mar-29-17 07:55PM  Motley Fool]
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.

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