One-glance verdict
Overvalued
$53.25 our estimate vs market $103.41
Wall Street consensus: $116.15 (118.1% higher than our fair-value estimate)
94% above our estimate, beyond the bull case
Fundamentals snapshot
eBay Inc.
EBAY · NMS · Consumer Cyclical · Internet Retail
Current price
$103.41
52-week range
$78.03 - $119.31
Market cap
$46.02B
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 47.5% above its 5-year average P/E.
What this company does
eBay Inc.
eBay runs a huge online marketplace where people can buy and sell almost anything, making its money by taking a small fee from each sale. Because eBay is just the middleman connecting buyers and sellers, it doesn't carry the costs of making products or managing a supply chain (the network required to create and ship goods). This means its financial success depends on the total value of everything sold on its platform, reflecting how many people are actively using the site.
How the company got here
Founded in 1995 as AuctionWeb, the first item ever sold was a broken laser pointer for $14.83. The company, renamed eBay in 1997, quickly grew in popularity, becoming a public company in 1998. A major turning point was the acquisition of PayPal in 2002, which simplified payments on the platform. In 2015, eBay spun off PayPal into a separate company to focus on its main e-commerce business.
What it actually does
eBay operates a global online marketplace that connects millions of buyers and sellers in over 190 countries. It's like a giant online flea market or bazaar where individuals and businesses can sell a vast array of new and used items. The company itself doesn't own the products sold; it acts as a middleman, providing the platform for transactions to happen. Sellers can list items for a fixed price or through an auction-style format where potential buyers place bids.
Marketplaces
This is the core of eBay's business and generates the vast majority of its revenue. It makes money by charging sellers fees to list their items and taking a percentage of the final sale price, known as a final value fee. This segment includes the familiar ebay.com website and its mobile apps, where you can buy everything from collectibles and car parts to fashion and electronics. Essentially, anyone who sells an item on eBay pays the company a small portion of the sale.
Advertising Revenues
This is a smaller but growing part of eBay's business. It allows sellers to pay for ads to make their listings more visible to potential buyers, a service often called 'Promoted Listings'. Think of it like paying extra to have your product featured more prominently in the search results, similar to how ads appear at the top of a Google search. This helps sellers stand out from the millions of other items on the site and is a key way eBay earns money beyond the basic selling fees.
What management is betting on now
The company's current strategy is to focus on being the best marketplace for enthusiasts and collectors rather than trying to compete with broad online retailers. This involves investing in specific 'focus categories' like collectibles, luxury goods, car parts, and refurbished items. Management is also prioritizing consumer-to-consumer (C2C) selling, making it easier for individuals to list and sell their pre-owned items. They are also investing in technology like artificial intelligence to improve the experience for both 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 $53.25 vs current price $103.41
Wall Street consensus is the average analyst price target: $116.15 (118.1% higher than our fair-value estimate).
Our most-likely fair value is $53.25 a share — about 48.5% below today's price of $103.41, 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 $523.40M 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 47.5% 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)
21.72x
Forward P/E
15.36x
P/B
9.86x
P/S
3.83x
EV/EBITDA
16.10x
PEG ratio
1.48x
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
4.76
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
1.2%
Payout ratio
25.2%
Last ex-div date
2026-08-28