As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.
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 $73 billion in 2023 gross merchandise volume, or GMV, rendering the firm a top 10 global e-commerce company. The company generates revenue from listing fees, advertising, revenue-sharing arrangements with service providers, and managed payments, with its platform connecting more than 130 million buyers and roughly 20 million sellers across almost 190 global markets at the end of 2023. eBay generates just north of 50% of its GMV in international markets, with a large presence in the UK, Germany, and Australia.
A quick look at the share price history (below) over the past twelve months shows that the price is up 18.68%. Here’s why the company is undervalued.
Source: Google Finance
Key Stats
Market Cap: $27.36 Billion
Enterprise Value: $27.37 Billion
Operating Earnings
Operating Earnings: $2.20 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 12.40
Free Cash Flow (TTM)
Free Cash Flow: $1.73 Billion
FCF/MC Yield %:
FCF/MC Yield: 6.33
Shareholder Yield %:
Shareholder Yield: 7.50
Other Indicators
Piotroski F Score: 6.00
Dividend Yield: 1.90
ROA (5 Year Avge%): 10
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