Stock In Focus – TAM Stock Screener – eBay Inc (EBAY)

As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.

One of the cheapest stocks in our Stock Screeners is:

eBay Inc (EBAY)

eBay operates one of the largest e-commerce marketplaces in the world, with $74 billion in 2022 gross merchandise volume, or GMV, rendering the firm a top 10 global e-commerce company. eBay generates revenue from listing fees, advertising, revenue-sharing arrangements with service providers, and managed payments, with its platform connecting more than 132 million buyers and roughly 20 million sellers across almost 190 global markets at the end of 2022. eBay generates just north of 50% of its GMV in international markets, with a large presence in the U.K., Germany, and Australia.

A quick look at the share price history (below) over the past twelve months shows that the price is down 19%. Here’s why the company is undervalued.

EBAY data by YCharts

Key Stats

Market Cap: $23.7 Billion

Enterprise Value: $25.6 Billion

Operating Earnings

Operating Earnings: $2.21 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 11.60

Free Cash Flow (TTM)

Free Cash Flow: $1.80 Billion

FCF/EV Yield %:

FCF/EV Yield: 7.60

Shareholder Yield %:

Shareholder Yield: 14.90

Other Indicators

Piotroski F-Score: 5.00

Altman Z-Score: 3.701

ROA (5 Year Avge%): 11