Price to Sales (P/S)
since 2005
Calculation
eBay Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net revenues1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan 30, 2019 | 2.90 | = | 34.08 | ÷ | 11.75 | 11.75 | = | 10,746 | ÷ | 914,880,451 | |
| Feb 5, 2018 | 4.48 | = | 42.37 | ÷ | 9.45 | 9.45 | = | 9,567 | ÷ | 1,012,079,673 | |
| Feb 6, 2017 | 3.88 | = | 32.03 | ÷ | 8.26 | 8.26 | = | 8,979 | ÷ | 1,087,042,601 | |
| Feb 1, 2016 | 3.28 | = | 23.94 | ÷ | 7.29 | 7.29 | = | 8,592 | ÷ | 1,178,705,177 | |
| Feb 6, 2015 | 3.68 | = | 54.50 | ÷ | 14.79 | 14.79 | = | 17,902 | ÷ | 1,210,046,829 | |
| Jan 31, 2014 | 4.29 | = | 53.20 | ÷ | 12.39 | 12.39 | = | 16,047 | ÷ | 1,294,654,966 | |
| Feb 1, 2013 | 5.27 | = | 57.21 | ÷ | 10.85 | 10.85 | = | 14,072 | ÷ | 1,296,512,321 | |
| Jan 31, 2012 | 3.49 | = | 31.60 | ÷ | 9.05 | 9.05 | = | 11,652 | ÷ | 1,286,914,976 | |
| Jan 28, 2011 | 4.30 | = | 30.31 | ÷ | 7.05 | 7.05 | = | 9,156 | ÷ | 1,298,369,992 | |
| Feb 17, 2010 | 3.38 | = | 22.68 | ÷ | 6.72 | 6.72 | = | 8,727 | ÷ | 1,299,006,884 | |
| Feb 20, 2009 | 1.83 | = | 12.18 | ÷ | 6.66 | 6.66 | = | 8,541 | ÷ | 1,282,965,764 | |
| Feb 29, 2008 | 4.56 | = | 26.36 | ÷ | 5.78 | 5.78 | = | 7,672 | ÷ | 1,327,947,115 | |
| Feb 28, 2007 | 7.35 | = | 32.06 | ÷ | 4.36 | 4.36 | = | 5,970 | ÷ | 1,368,973,770 | |
| Feb 24, 2006 | 12.82 | = | 41.49 | ÷ | 3.24 | 3.24 | = | 4,552 | ÷ | 1,406,718,316 |
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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of eBay Inc. Annual Report.
- Share Price Trend
- The share price experienced a notable decline from $41.49 in February 2006 to a low of $12.18 in February 2009. Following this bottom, there was a recovery trend with the price reaching a peak of $57.21 by February 2013. After this peak, the price generally decreased with fluctuations, leading to a share price of $34.08 by January 2019. This indicates volatility and significant market value changes over the period.
- Sales Per Share Trend
- Sales per share showed a steady increase over the entire period, starting at $3.24 in February 2006 and growing to $11.75 by January 2019. Despite some fluctuations, particularly a decrease between February 2014 and February 2016, the overall trend indicates consistent revenue growth per share, suggesting improving operational performance or increasing revenue generation capability.
- Price-to-Sales (P/S) Ratio Trend
- The P/S ratio declined sharply from 12.82 in February 2006 to 1.83 in February 2009, reflecting a sharp drop in share price relative to sales per share during that period. After 2009, the ratio oscillated but generally remained below the initial 2006 level, fluctuating mostly between 2.9 and 5.27. This pattern suggests investors became more conservative in valuing sales relative to price over time, or that sales increased at a faster pace than the share price post-2009.
- Insights and Observations
- The data indicate that the company faced significant market valuation challenges around 2008-2009, with share price hitting a low while sales per share continued to increase, implying that market sentiment was negative despite improving fundamentals. The recovery in share price up to 2013 coincides with continued growth in sales, yet the P/S ratio's variability implies ongoing uncertainty in market valuation. The decoupling of share price and sales toward the latter years suggests that although revenue per share improved steadily, investor sentiment or market conditions moderated the company's valuation multiples.
Comparison to Competitors
eBay Inc., P/S, long-term trends, comparison to competitors
| eBay Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Jan 30, 2019 | 2.90 | 3.43 | 2.01 | 1.02 | 1.47 |
| Feb 5, 2018 | 4.48 | 3.89 | 1.88 | 1.08 | 1.53 |
| Feb 6, 2017 | 3.88 | 2.90 | 1.85 | 1.15 | 1.68 |
| Feb 1, 2016 | 3.28 | 2.58 | 1.77 | 1.26 | 1.65 |
| Feb 6, 2015 | 3.68 | 1.85 | 1.38 | 0.93 | 1.57 |
| Jan 31, 2014 | 4.29 | 2.21 | 1.39 | 0.82 | 1.33 |
| Feb 1, 2013 | 5.27 | 2.03 | 1.08 | 0.75 | 1.27 |
| Jan 31, 2012 | 3.49 | 1.70 | 0.89 | 0.73 | 0.89 |
| Jan 28, 2011 | 4.30 | 2.26 | 0.83 | 0.74 | 0.87 |
| Feb 17, 2010 | 3.38 | 2.27 | 0.59 | 0.56 | 0.56 |
| Feb 20, 2009 | 1.83 | 1.31 | 0.64 | 0.74 | 0.77 |
| Feb 29, 2008 | 4.56 | 2.11 | 0.80 | 1.02 | 0.69 |
| Feb 28, 2007 | 7.35 | 1.56 | 1.11 | 1.17 | 0.73 |
| Feb 24, 2006 | 12.82 | 1.93 | 1.11 | 1.14 | 0.79 |
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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
eBay Inc., P/S, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| eBay Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Jan 30, 2019 | 2.90 | 2.56 |
| Feb 5, 2018 | 4.48 | 2.67 |
| Feb 6, 2017 | 3.88 | 2.16 |
| Feb 1, 2016 | 3.28 | 1.97 |
| Feb 6, 2015 | 3.68 | 1.47 |
| Jan 31, 2014 | 4.29 | 1.52 |
| Feb 1, 2013 | 5.27 | 1.30 |
| Jan 31, 2012 | 3.49 | 1.06 |
| Jan 28, 2011 | 4.30 | 1.10 |
| Feb 17, 2010 | 3.38 | 0.83 |
| Feb 20, 2009 | 1.83 | 0.76 |
| Feb 29, 2008 | 4.56 | 0.96 |
| Feb 28, 2007 | 7.35 | 1.12 |
| Feb 24, 2006 | 12.82 | 1.14 |
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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Discretionary)
eBay Inc., P/S, long-term trends, comparison to industry (consumer discretionary)
| eBay Inc. | Consumer Discretionary | |
|---|---|---|
| Jan 30, 2019 | 2.90 | 2.05 |
| Feb 5, 2018 | 4.48 | 2.06 |
| Feb 6, 2017 | 3.88 | 1.68 |
| Feb 1, 2016 | 3.28 | 1.57 |
| Feb 6, 2015 | 3.68 | 1.32 |
| Jan 31, 2014 | 4.29 | 1.33 |
| Feb 1, 2013 | 5.27 | 1.06 |
| Jan 31, 2012 | 3.49 | 0.97 |
| Jan 28, 2011 | 4.30 | 0.96 |
| Feb 17, 2010 | 3.38 | 0.92 |
| Feb 20, 2009 | 1.83 | 0.66 |
| Feb 29, 2008 | 4.56 | 0.79 |
| Feb 28, 2007 | 7.35 | 0.86 |
| Feb 24, 2006 | 12.82 | 0.79 |
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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).