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 (3.9/5)
Our eBay stock opinion is based on fundamentals of the company. This eBay stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy EBAY stock?
- eBay had a healthy average operating margin of 20.6% over the last 4 quarters.
- Net margins came in at average 20.3% for eBay over the last twelve months.
- The company has an operating cash flow which is 1.9 times the net income. We see this as a positive signal.
- eBay has an attractive ROIC (Return on Invested Capital) of 19%
- The LTM ROE of 27.7% for eBay is attractive.
- eBay has a healthy FCF (Free Cash Flow) margin of 27.8%.
Should you sell EBAY stock?
- Sales declined by annually over the last 5 years.
- eBay is debt laden and has a high debt/equity ratio of 1.32.
- The company is trading at a price to sales multiple of 3.8, which is overvalued in comparison to the Internet Commerce industry average multiple of 0.8.