EBay Price to Book vs. Current Ratio

EBAY Stock  USD 51.25  0.31  0.61%   
Based on the key profitability measurements obtained from EBay's financial statements, eBay Inc is yielding more profit at the moment then in previous quarter. It has a moderate risk of reporting better profitability numbers in May. Profitability indicators assess EBay's ability to earn profits and add value for shareholders. At this time, EBay's Days Sales Outstanding is fairly stable compared to the past year. Operating Cash Flow Sales Ratio is likely to rise to 0.34 in 2024, whereas Price To Sales Ratio is likely to drop 2.18 in 2024. At this time, EBay's Total Other Income Expense Net is fairly stable compared to the past year. Income Tax Expense is likely to rise to about 978.6 M in 2024, whereas Accumulated Other Comprehensive Income is likely to drop slightly above 175.8 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.860.7173
Fairly Up
Pretty Stable
Operating Profit Margin0.180.2026
Fairly Down
Pretty Stable
For EBay profitability analysis, we use financial ratios and fundamental drivers that measure the ability of EBay to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well eBay Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between EBay's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of eBay Inc over time as well as its relative position and ranking within its peers.
  
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Is EBay's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of EBay. If investors know EBay will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about EBay listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.131
Dividend Share
1
Earnings Share
5.21
Revenue Per Share
19.079
Quarterly Revenue Growth
0.021
The market value of eBay Inc is measured differently than its book value, which is the value of EBay that is recorded on the company's balance sheet. Investors also form their own opinion of EBay's value that differs from its market value or its book value, called intrinsic value, which is EBay's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because EBay's market value can be influenced by many factors that don't directly affect EBay's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between EBay's value and its price as these two are different measures arrived at by different means. Investors typically determine if EBay is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, EBay's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

eBay Inc Current Ratio vs. Price to Book Fundamental Analysis

EBay Current Ratio vs. Price to Book

EBay

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Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.

EBay

Current Ratio

 = 

Current Asset

Current Liabilities

 = 
1.33 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).

EBay Current Ratio Comparison

EBay is currently under evaluation in current ratio category among related companies.

Use EBay in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if EBay position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in EBay will appreciate offsetting losses from the drop in the long position's value.

EBay Pair Trading

eBay Inc Pair Trading Analysis

The ability to find closely correlated positions to EBay could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace EBay when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back EBay - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling eBay Inc to buy it.
The correlation of EBay is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as EBay moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if eBay Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for EBay can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your EBay position

In addition to having EBay in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Real Estate Thematic Idea Now

Real Estate
Real Estate Theme
Publicly traded companies that are involved in real estate development, property maintenance and management of real estate investment trusts (REIT) funds. The Real Estate theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Real Estate Theme or any other thematic opportunities.
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When determining whether eBay Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of EBay's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ebay Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ebay Inc Stock:
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Note that the eBay Inc information on this page should be used as a complementary analysis to other EBay's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

Complementary Tools for EBay Stock analysis

When running EBay's price analysis, check to measure EBay's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy EBay is operating at the current time. Most of EBay's value examination focuses on studying past and present price action to predict the probability of EBay's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move EBay's price. Additionally, you may evaluate how the addition of EBay to your portfolios can decrease your overall portfolio volatility.
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To fully project EBay's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of eBay Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include EBay's income statement, its balance sheet, and the statement of cash flows.
Potential EBay investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although EBay investors may work on each financial statement separately, they are all related. The changes in EBay's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on EBay's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.