eBay Inc
EBAY
$94.14
+1.08%
eBay Inc operates one of the world's largest e-commerce marketplaces, connecting buyers and sellers globally. It is a top 10 global e-commerce company with a vast international footprint and a focus on marketplace and advertising revenues.
EBAY
eBay Inc
$94.14
Related headlines
Investment Opinion: Should I buy EBAY Today?
Based on a synthesis of the data, eBay merits a 'Hold' rating. The company demonstrates solid fundamental strength with double-digit revenue growth and exceptional cash flow, trading at a reasonable forward P/E of 13.6x. However, margin compression, elevated debt, and its cyclical nature temper the bullish case. The stock is not significantly undervalued at current levels near the upper end of its 52-week range, suggesting limited near-term upside potential for new money. Investors may find better entry points during market pullbacks.
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EBAY 12-Month Price Forecast
The analysis leans neutral due to balanced catalysts and risks. The strong cash flow and reasonable valuation provide a floor, while margin pressure and leverage cap the upside. The 12-month outlook is range-bound with a slight upward bias if execution improves.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on eBay Inc's 12-month outlook, with a consensus price target around $122.38 and implied upside of +30.0% versus the current price.
Average Target
$122.38
7 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
7
covering this stock
Price Range
$75 - $122
Analyst target range
No sufficient analyst coverage available. The provided data includes institutional ratings actions but does not contain a consensus target price or a detailed breakdown of analyst ratings distribution (e.g., buy/hold/sell counts). The recent ratings from various firms show a mix of Buy, Overweight, Neutral, Hold, and Equal Weight recommendations following the Q4 2025 earnings report.
Bulls vs Bears: EBAY Investment Factors
eBay presents a mixed but leaning positive picture. Strong revenue growth, cash generation, and a strategic acquisition are offset by margin pressure and leverage. The stock's recent outperformance and reasonable forward valuation support a cautiously optimistic view.
Bullish
- Strong Revenue Growth: Q4 revenue grew 15% YoY, indicating marketplace momentum.
- Robust Profitability & Cash Flow: 18.2% net margin and $1.43B TTM free cash flow.
- Attractive Forward Valuation: Forward P/E of 13.6x suggests reasonable valuation for growth.
- Strategic Depop Acquisition: Enhances appeal to younger demographics and future growth.
Bearish
- Margin Compression: Net margin declined from 26.3% to 18.2% YoY in Q4.
- Elevated Debt Levels: Debt-to-equity ratio of 1.60 indicates leveraged balance sheet.
- Cyclical & Competitive Market: Consumer discretionary sector faces intense e-commerce competition.
- Valuation Above Historical Lows: Trading ~10% below 52-week high, limiting near-term upside.
EBAY Technical Analysis
The stock's overall trend over the past six months has been volatile but positive, with a net gain of approximately 2.96% from the price of $88.40 on October 2, 2025, to $91.02 on March 31, 2026. The price experienced a sharp decline in late October 2025, falling from nearly $100 to around $81, followed by a recovery and subsequent trading range between roughly $80 and $96. In the short term, the stock has shown strength, rising 17.61% over the past month and 4.50% over the past three months, significantly outperforming the S&P 500 which declined -5.25% and -4.63% over the same periods, respectively. The current price of $91.02 represents a 3.42% increase from the previous close of $88.01. The stock is currently trading near the upper end of its 52-week range, with the current price of $91.02 sitting well above the 52-week low of $58.71 but still about 10% below the 52-week high of $101.15. The provided data indicates strong relative strength over the past month, quarter, and year compared to the broader market.
Beta
1.37
1.37x market volatility
Max Drawdown
-21.2%
Largest decline past year
52-Week Range
$59-$101
Price range past year
Annual Return
+39.6%
Cumulative gain past year
| Period | EBAY Return | S&P 500 |
|---|---|---|
| 1m | +5.0% | -3.6% |
| 3m | +8.1% | -4.0% |
| 6m | +2.1% | -2.0% |
| 1y | +39.6% | +16.2% |
| ytd | +8.1% | -3.8% |
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EBAY Fundamental Analysis
Revenue for Q4 2025 was $2.97 billion, representing a year-over-year growth of 14.97% compared to the same quarter in 2024. Profitability remains healthy with a net margin of 18.2% for the quarter, though this is down from the 26.3% net margin reported in Q4 2024, indicating some margin compression. Gross margin for the latest quarter was a robust 71.37%. The company's financial health shows a debt-to-equity ratio of 1.60, indicating a leveraged balance sheet. However, it maintains a strong cash position with free cash flow over the trailing twelve months of $1.43 billion, providing ample liquidity for operations, dividends, and share repurchases. Operational efficiency is highlighted by a high return on equity (ROE) of 44.01% and a return on assets (ROA) of 7.80%. The asset turnover, while not provided in the latest metrics, historically has been in the range of 0.12-0.17, which is typical for an asset-light marketplace business model.
Quarterly Revenue
$3.0B
2025-12
Revenue YoY Growth
+0.14%
YoY Comparison
Gross Margin
+0.71%
Latest Quarter
Free Cash Flow
$1.4B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is EBAY Overvalued?
Given that eBay has positive net income, the primary valuation metric used is the Price-to-Earnings (P/E) ratio. The trailing P/E ratio is 19.34, while the forward P/E is lower at 13.65, suggesting expectations of earnings growth. The Price-to-Sales (P/S) ratio is 3.54, and the Enterprise Value to EBITDA (EV/EBITDA) is 15.71. Peer comparison data for industry averages is not provided in the valuation inputs. Therefore, a standalone assessment shows the stock trades at a forward P/E of 13.6x, which may be considered reasonable for a mature e-commerce company with moderate growth and strong cash generation, especially when compared to the higher trailing P/E.
PE
19.3x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -72x~43x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
15.7x
Enterprise Value Multiple
Investment Risk Disclosure
eBay's primary financial risk is its leveraged balance sheet, with a debt-to-equity ratio of 1.60, which could strain finances if interest rates rise or earnings decline. The significant compression in net margin from 26.3% to 18.2% year-over-year highlights operational risks, potentially from increased investment or competitive pressures. As a consumer cyclical company, eBay is highly sensitive to macroeconomic downturns, which could reduce discretionary spending on its marketplace. Market and competitive risks are substantial. The e-commerce sector is intensely competitive, with larger players like Amazon exerting constant pressure. The company's beta of 1.37 indicates the stock is more volatile than the broader market, making it susceptible to general market sell-offs. Recent news highlights strategic moves like the Depop acquisition to attract younger users, but execution risk and integration challenges remain. Geopolitical tensions, as noted in recent headlines, can create a risk-off environment that pressures broader markets and cyclical stocks like eBay.
FAQ
Key risks include financial leverage (debt-to-equity of 1.60), compression in net margin (down from 26.3% to 18.2% YoY), and sensitivity to economic cycles as a consumer discretionary stock. Competitive pressures in e-commerce and execution risks related to the Depop acquisition are also significant. The stock's beta of 1.37 means it is more volatile than the market.
The 12-month outlook presents a base case target range of $85 to $100, implying modest upside from $91.02. This assumes steady execution, mid-single-digit revenue growth, and a stable forward P/E multiple. A bull case to $110+ depends on successful Depop integration, while a bear case could see a retest toward $70 if macro conditions worsen.
EBAY appears fairly valued. Its forward P/E of 13.6x is significantly lower than its trailing P/E of 19.3x, reflecting expected earnings growth. Compared to its 52-week low of $58.71, the current price of $91.02 is much higher, but it remains below the high of $101.15. The valuation balances strong cash generation against moderate growth prospects.
EBAY is a 'Hold' based on current data. It has strengths like 15% Q4 revenue growth and $1.43B in annual free cash flow, but it trades only ~10% below its 52-week high. The forward P/E of 13.6x is reasonable, but margin pressure and a debt-to-equity ratio of 1.60 suggest waiting for a more attractive entry point may be prudent.
EBAY is more suitable for a long-term, income-oriented investor. Its strong free cash flow supports consistent dividends and buybacks. However, its cyclical nature and recent volatility make it less ideal for short-term trading. Long-term investors can benefit from its global platform and cash returns, provided they can withstand periods of market-driven price swings.