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's average operating margin of 24.9% was exceptional.
- Net margins came in at average 86.3% for eBay over the last twelve months.
- eBay has an attractive ROIC (Return on Invested Capital) of 15%
- eBay has a good Return On Equity (ROE) of 93.7%.
- The company has a good Free Cash Flow (FCF) margin of 20.2%.
Should you sell EBAY stock?
- Revenue declined at a CAGR of -6.1% over the last 5 years.
- eBay is debt laden and has a high debt/equity ratio of 0.77.
- Cash flow from operations is low at 0.6 times the net income.
- 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.