Stock Analysis on Net

eBay Inc. (NASDAQ:EBAY)

This company has been moved to the archive! The financial data has not been updated since October 24, 2019.

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

eBay Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net income (loss) 2,530 (1,016) 7,266 1,725 46
Less: Income (loss) from discontinued operations, net of income taxes 2 (4) (19) (222)
Add: Income tax expense 190 3,288 (3,634) 459 3,485
Earnings before tax (EBT) 2,718 2,276 3,651 2,406 3,531
Add: Interest expense 326 292 225 144 123
Earnings before interest and tax (EBIT) 3,044 2,568 3,876 2,550 3,654
Add: Depreciation and amortization 696 676 682 687 1,490
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,740 3,244 4,558 3,237 5,144

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. eBay Inc. EBITDA decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.

Enterprise Value to EBITDA Ratio, Current

eBay Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 33,294
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,740
Valuation Ratio
EV/EBITDA 8.90
Benchmarks
EV/EBITDA, Competitors1
Amazon.com Inc. 20.87
Home Depot Inc. 16.74
Lowe’s Cos. Inc. 13.29
TJX Cos. Inc. 20.24

Based on: 10-K (reporting date: 2018-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

eBay Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 35,495 47,034 36,629 28,866 63,477
Earnings before interest, tax, depreciation and amortization (EBITDA)2 3,740 3,244 4,558 3,237 5,144
Valuation Ratio
EV/EBITDA3 9.49 14.50 8.04 8.92 12.34
Benchmarks
EV/EBITDA, Competitors4
Amazon.com Inc.
Home Depot Inc.
Lowe’s Cos. Inc.
TJX Cos. Inc. 11.11

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

1 See details »

2 See details »

3 2018 Calculation
EV/EBITDA = EV ÷ EBITDA
= 35,495 ÷ 3,740 = 9.49

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. eBay Inc. EV/EBITDA ratio increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level.