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 (3.8/5)
Our eBay stock opinion is based on fundamentals of the company. This eBay stock analysis is based on latest Q1 earnings for 2017. 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 24.9% over the last 4 quarters.
- Net margins stood at a healthy 86.3% (average) for eBay in the Trailing Twelve Months.
- eBay has an attractive ROIC (Return on Invested Capital) of 15%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for eBay at 93.7%.
- The company has a healthy free cash flow margin of 20.2%.
Should you sell EBAY stock?
- The company saw an average annual sales decline of -6.1% in sales over the last 5 years.
- With a debt/equity ratio of 0.77, eBay is highly leveraged in comparison to Retail-Wholesale peers.
- Cash flow from operations is low at 0.6 times the net income.
- Trading at a PE ratio of 23.1, EBAY stock is overvalued in comparison to industry average multiple of 17.2.
- The company is trading at a price to sales multiple of 4.4, which is overvalued in comparison to the Internet Commerce industry average multiple of 0.7.