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 Q2 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 24.1% over the last 4 quarters.
- LTM Net margins were good at 80.9% for eBay.
- The company has an operating cash flow which is 25.9 times the net income.
- eBay's return on invested capital of 12.9% is good.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for eBay at 79%.
- The company has a healthy free cash flow margin of 22.2%.
Should you sell EBAY stock?
- The company saw an average annual sales decline of -6.8% in sales over the last 5 years.
- With a debt/equity ratio of 1, eBay is highly leveraged in comparison to Retail-Wholesale peers.
- EBAY stock is trading at a PE ratio of 23.3, which is worse than the industry average multiple of 17.2.
- The company is trading at a price to sales multiple of 4.4, which is higher in comparison to the Internet Commerce industry average of 0.7, making EBAY stock expensive.