Fundamentals snapshot
EBAY · NMS · Consumer Cyclical · Internet Retail
Current price
$108.44
52-week range
$72.84 - $119.31
Market cap
$48.15B
One-glance verdict
Fair-value range $54.23 – $71.69 (cautious → optimistic — tap the ? for the math)
Wall Street consensus: $108.13 (93.2% higher than our fair-value estimate)
Buy below $44.77 for a 20% safety cushion
Balance sheet
Net debt $3.35B. Interest coverage shows how many times profit covers the interest bill.
What stands out
Quick scan of the biggest positives and negatives from the detailed checklist below.
What this company does
eBay operates an online marketplace that connects people and businesses to buy and sell a huge variety of new and used items globally. The company makes money mainly by taking a small percentage fee from each sale that happens on its website or app. This matters because eBay's success doesn't depend on making its own products, but on attracting a large and active community of buyers and sellers to its platform.
eBay started in 1995 as 'AuctionWeb,' created by founder Pierre Omidyar. The first item sold was a broken laser pointer for $14.83. The company grew rapidly, going public in 1998, and became known for everything from Beanie Babies to used cars. A major turning point was its 2002 acquisition of PayPal, the online payment service, which made transactions much easier and safer for users; the two companies split in 2015. Over the years, eBay has shifted from a simple auction site for collectibles to a global marketplace for a vast range of goods.
eBay operates a global online marketplace that connects millions of buyers and sellers in over 190 countries. Think of it as a giant online flea market and department store combined, where you can find almost anything, from brand-new electronics to rare collectibles and used clothing. The company doesn't own the items sold; it acts as an intermediary (a go-between), providing the platform for individuals and businesses to list products for sale. Shoppers can buy items at a fixed price, known as 'Buy It Now,' or bid on them in auctions.
This is eBay's main business and generates the vast majority of its revenue. The company makes money by charging sellers fees to list their items and taking a percentage of the final sale price, including shipping costs. This is often called a transaction fee or final value fee. Sellers with a large volume of products can also pay for a subscription to an 'eBay Store,' which offers lower fees and more tools to manage their business.
This is a smaller but growing part of eBay's business. To make their items stand out among the billions of listings, sellers can pay to have their products featured more prominently in search results. This service, called 'Promoted Listings,' helps sellers get more visibility for their products. eBay makes money when sellers pay for these advertisements, often on a cost-per-sale basis, meaning the seller only pays if the item sells through the ad.
eBay is focusing its strategy on attracting 'enthusiast buyers' who are passionate about specific categories like luxury watches, sneakers, trading cards, and auto parts. To build trust with these high-value customers, the company has introduced services like an 'Authenticity Guarantee' to verify the legitimacy of items. The company is also investing in technology, using artificial intelligence (AI) to improve search results and personalize the shopping experience. Another key focus is 'recommerce' (the sale of pre-owned and refurbished goods), which is a fast-growing segment of the market.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
Wall Street consensus is the average analyst price target: $108.13 (93.2% higher than our fair-value estimate).
Buy below $44.77 for a 20% safety cushion. That means buying at least 20% below our fair value, as a buffer in case our estimate turns out too rosy.
Our most-likely fair value is $55.97 a share — about 48.4% below today's price of $108.44, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Net debt $3.3B. Interest coverage 9.3x.
eBay Inc.'s profit covers its interest bill about 9.3 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Total debt $7.21B Interest coverage 9.26x This is the baseline the peer rows are being compared against.
Total debt $12.38B Interest coverage 20.01x +116% vs EBAY Carries about 2.2x more debt cushion than EBAY.
Total debt $15.93B Interest coverage 1.32x -86% vs EBAY Carries about 7.0x less debt cushion than EBAY.
Total debt $3.08B Interest coverage 19.88x +115% vs EBAY Carries about 2.1x more debt cushion than EBAY.
Total debt $5.40B Interest coverage 5.50x -41% vs EBAY Carries about 1.7x less debt cushion than EBAY.
Total debt $3.67B Interest coverage 0.78x -92% vs EBAY Carries about 11.8x less debt cushion than EBAY.
What you should know
The numbers
Tap any ? icon to learn what it means.
Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know