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.
The analysis of the price-to-sales (P/S) ratio from 2006 to 2019 reveals a significant long-term contraction in market valuation relative to revenue generation. While sales per share grew substantially over the majority of the period, the market multiple applied to those sales experienced a persistent downward trend, indicating a fundamental shift in how the market priced the company's revenue.
- Initial Valuation Compression (2006–2009)
- A dramatic decline in the P/S ratio occurred during the first four years of the analyzed period. The ratio dropped from a high of 12.82 in February 2006 to a period low of 1.83 by February 2009. This collapse in the multiple coincided with a significant decrease in share price, falling from 41.49 to 12.18, despite the fact that sales per share more than doubled from 3.24 to 6.66 during the same timeframe.
- Recovery and Stabilization Phase (2010–2015)
- Following the 2009 low, the P/S ratio entered a period of volatility and moderate recovery, fluctuating between 3.28 and 5.27. During this phase, sales per share showed consistent growth, peaking at 14.79 in February 2015. However, the P/S ratio failed to regain its pre-2007 levels, suggesting that the market no longer assigned the same premium to the company's revenue streams as it had in 2006.
- Structural Adjustment and Recent Trends (2016–2019)
- A notable disruption occurred in February 2016, characterized by a sharp reduction in both share price (from 54.50 to 23.94) and sales per share (from 14.79 to 7.29). Despite these steep declines, the P/S ratio remained relatively stable, moving from 3.68 to 3.28, which indicates that the market viewed this as a structural change rather than a devaluation of the underlying business model. Between 2017 and 2019, the P/S ratio fluctuated before ending the period at 2.90, confirming a long-term trajectory of valuation compression.
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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).