One-glance verdict
Overvalued
$77.77 our estimate vs market $122.90
Wall Street consensus: $116.47 (49.8% higher than our fair-value estimate)
58% above our estimate, beyond the bull case
Fundamentals snapshot
eBay Inc.
EBAY · NMS · Consumer Cyclical · Internet Retail
Current price
$122.90
52-week range
$78.03 - $124.59
Market cap
$54.69B
Balance sheet
Watch
9.26x Adequate
Net debt $3.83B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 8.2% last year.
- Reward Returns 46.6% on equity, ahead of 50% of its peers.
- Risk Net debt grew 118.6% over 3 years.
- Risk Stock trades 75.6% above its 5-year average P/E.
What this company does
eBay Inc.
eBay is an online marketplace where people buy and sell all sorts of items, like collectibles and used goods. Most of its money comes from fees it charges sellers when they list or sell something, and these fees help keep the lights on and allow eBay to keep running its digital store. This is important because it shows how eBay makes money from its core business of connecting buyers and sellers.
How the company got here
eBay started in 1995 as AuctionWeb, a simple online platform for people to buy and sell items. Its founder, Pierre Omidyar, created it to foster an honest and open marketplace. The company quickly grew, going public in 1998 and expanding its offerings over the years. Key moments include the launch of eBay Motors in 2000, making it easier to buy and sell cars online, and the acquisition of PayPal in 2002, which streamlined online payments. Over time, eBay has evolved from an auction site to a broader e-commerce platform, focusing on connecting buyers and sellers for a wide variety of goods, especially unique, used, or collectible items.
What it actually does
eBay operates a large online marketplace that connects millions of buyers and sellers worldwide. Think of it as a giant digital flea market or shopping mall where individuals and businesses can list items for sale. Buyers can either bid on items in an auction-style format or purchase them immediately at a set price. eBay makes money by charging sellers fees for listing their items and a percentage of the final sale price, as well as offering advertising services to help sellers promote their products.
Marketplaces
This is eBay's core business and where it makes most of its money. It's the online platform where buyers and sellers come together to trade almost any legal item. Sellers list their products, and buyers can search, bid on, or buy them outright. eBay earns revenue primarily through transaction fees, which are a small percentage of the final sale price of an item, and also from listing fees and other services sellers might use to make their items more visible. This segment represents the vast majority of eBay's total revenue, making it the engine of the company.
Advertising
This segment is a growing part of eBay's business where the company offers various advertising services to sellers. These services, like 'Promoted Listings,' help sellers make their products stand out to potential buyers within the eBay marketplace. By paying for these ads, sellers can increase the visibility of their items, leading to more potential sales. eBay generates revenue from these advertising services, which is a smaller but increasingly important slice of its overall income compared to the marketplace fees.
What management is betting on now
eBay's current strategy focuses on becoming the go-to marketplace for enthusiasts and for specific categories of goods, rather than trying to be everything to everyone. They are investing in making it easier for sellers to list items, using technology like artificial intelligence to improve how buyers find products, and strengthening trust through services like authentication for high-value items. Management is also prioritizing growth in advertising services, as this is a higher-margin way to make money compared to just transaction fees. The goal is to create a more focused and efficient marketplace that appeals to both dedicated buyers and sellers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$646.00M
FY2024 Q4
$560.00M
FY2025 Q1
$644.00M
FY2025 Q2
$-441.00M
FY2025 Q3
$830.00M
FY2025 Q4
$466.00M
FY2026 Q1
$897.00M
FY2026 Q2
$300.00M
Revenue
$3.13B
Net income
$550.00M
Diluted EPS
1.21
Operating cash flow
$523.00M
Free cash flow
$300.00M
Fetching…
Sources
Revenue
$3.09B
Net income
$512.00M
Diluted EPS
1.12
Operating cash flow
$969.00M
Free cash flow
$897.00M
Fetching…
Sources
Revenue
$2.96B
Net income
$528.00M
Diluted EPS
1.14
Operating cash flow
$583.00M
Free cash flow
$466.00M
Fetching…
Sources
Revenue
$2.82B
Net income
$632.00M
Diluted EPS
1.35
Operating cash flow
$961.00M
Free cash flow
$830.00M
Fetching…
Sources
Revenue
$2.73B
Net income
$368.00M
Diluted EPS
0.79
Operating cash flow
$-307.00M
Free cash flow
$-441.00M
Fetching…
Sources
Revenue
$2.58B
Net income
$503.00M
Diluted EPS
1.06
Operating cash flow
$787.00M
Free cash flow
$644.00M
Fetching…
Sources
Revenue
$2.58B
Net income
$679.00M
Diluted EPS
1.35
Operating cash flow
$677.00M
Free cash flow
$560.00M
Fetching…
Sources
Revenue
$2.58B
Net income
$634.00M
Diluted EPS
1.29
Operating cash flow
$755.00M
Free cash flow
$646.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $77.77 vs current price $122.90
Wall Street consensus is the average analyst price target: $116.47 (49.8% higher than our fair-value estimate).
Our most-likely fair value is $77.77 a share — about 36.7% below today's price of $122.90, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $3.8B. Interest coverage 9.3x.
Net debt
$3.83B
Interest coverage
9.26x
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.
Watch
Worse cushion
Baseline
Better cushion
EBAY
BASELINE
eBay Inc.
Total debt $7.14B Interest coverage 9.26x This is the baseline the peer rows are being compared against.
Total debt $3.08B Interest coverage 19.88x +115% vs EBAY Carries about 2.1x more debt cushion than EBAY.
Total debt $13.21B Interest coverage 20.01x +116% vs EBAY Carries about 2.2x more debt cushion than EBAY.
Total debt $5.63B Interest coverage 5.50x -41% vs EBAY Carries about 1.7x less debt cushion than EBAY.
Total debt $3.52B Interest coverage 0.78x -92% vs EBAY Carries about 11.8x less debt cushion than EBAY.
Total debt $1.16B Interest coverage 55.28x +497% vs EBAY Carries about 6.0x more debt cushion than EBAY.
What you should know
The case for and against EBAY
3 Rewards
3 Risks
Rewards
-
Revenue grew 8.2% last year.
-
Returns 46.6% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 118.6% over 3 years.
-
Stock trades 75.6% above its 5-year average P/E.
-
Operating margin compressed from 24.0% to 21.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
25.87x
Forward P/E
18.29x
P/B
11.72x
P/S
4.55x
EV/EBITDA
18.90x
PEG ratio
1.70x
Profitability
How much profit each dollar creates
Gross margin
72.1%
Operating margin
21.6%
Net margin
18.6%
ROE
46.6%
ROA
9.1%
Health
Liquidity and balance-sheet strength
Debt / equity
1.53x
Current ratio
1.02x
Quick ratio
0.92x
Total debt
$7.14B
Total cash
$3.31B
Growth
How the business has been compounding
Revenue TTM
$12.01B
Revenue 5Y CAGR
1.6%
EPS TTM
4.75
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$3.04B
Free CF TTM
$1.43B
FCF margin
11.9%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
25.3%
Last ex-div date
2026-08-28