eBay Stock Analysis (NASDAQ:EBAY)
eBay Analysis Video
View eBay stock analysis video. This is our EBAY analyst opinion covering the buy and sell arguments for EBAY stock.
eBay Inc Stock Rating (4/5)
Our eBay stock opinion is based on fundamentals of the company. This eBay stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy EBAY stock?
- eBay's average operating margin of 25.9% was exceptional.
- Net margins stood at a healthy 80.9% (average) for eBay in the Trailing Twelve Months.
- eBay generates a high return on invested capital of 17.8%.
- eBay has a good Return On Equity (ROE) of 99%.
- eBay has a healthy FCF (Free Cash Flow) margin of 20.2%.
Should you sell EBAY stock?
- Sales declined by -5.1% annually over the last 5 years.
- eBay has a debt/equity ratio of 0.85, which is worse than the average in the Retail-Wholesale sector.
- Cash flow from operations is low at 0.1 times the net income.
- The company is trading at a price to sales multiple of 4.1, which is overvalued in comparison to the Internet Commerce industry average multiple of 0.7.