Name: eBay Inc. (NASDAQ:EBAY) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

eBay Inc., current enterprise value calculation

Current share price (P)	$35.62
No. shares of common stock outstanding	813,525,054
US$ in millions
Common equity (market value)¹	28,978)
Total equity	28,978)
Add: Short-term debt (per books)	1,546)
Add: Long-term debt (per books)	7,685)
Total equity and debt	38,209)
Less: Cash and cash equivalents	2,202)
Less: Short-term investments	2,713)
Enterprise value (EV)	33,294)

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

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 35.62 × 813,525,054

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eBay Inc., EV calculation

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Share price^1, 2	$34.08	$42.37	$32.03	$23.94	$54.50
No. shares of common stock outstanding¹	914,880,451	1,012,079,673	1,087,042,601	1,178,705,177	1,210,046,829
US$ in millions
Common equity (market value)³	31,179)	42,882)	34,818)	28,218)	65,948)
Total equity	31,179)	42,882)	34,818)	28,218)	65,948)
Add: Short-term debt (book value)	1,546)	781)	1,451)	—)	850)
Add: Long-term debt (book value)	7,685)	9,234)	7,509)	6,779)	6,777)
Total equity and debt	40,410)	52,897)	43,778)	34,997)	73,575)
Less: Cash and cash equivalents	2,202)	2,120)	1,816)	1,832)	6,328)
Less: Short-term investments	2,713)	3,743)	5,333)	4,299)	3,770)
Enterprise value (EV)	35,495)	47,034)	36,629)	28,866)	63,477)

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 Data adjusted for splits and stock dividends.

² Closing price as at the filing date of eBay Inc. Annual Report.

³ 2018 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 34.08 × 914,880,451

The financial metrics from 2014 to 2018 exhibit significant volatility, characterized by a sharp contraction in 2015, a multi-year recovery period peaking in 2017, and a subsequent decline in 2018.

Market Value and Equity Trends: Common equity experienced a substantial decrease of approximately 57% between 2014 and 2015, falling from US$ 65,948 million to US$ 28,218 million. A recovery trend followed, with equity value rising steadily to reach US$ 42,882 million by December 31, 2017, before decreasing again to US$ 31,179 million in 2018.
Enterprise Value (EV) Analysis: Enterprise value mirrored the trajectory of the market capitalization, dropping sharply from US$ 63,477 million in 2014 to US$ 28,866 million in 2015. The value then trended upward, peaking at US$ 47,034 million in 2017. By the end of 2018, the enterprise value retreated to US$ 35,495 million, representing a notable decline from the 2017 peak but remaining above the 2015 lows.
Capital Structure Observations: Total equity and debt consistently remained higher than the Enterprise Value across all reported years. This gap suggests that the company maintained a significant cash position, as the subtraction of cash and cash equivalents from the combined equity and debt totals resulted in a lower net enterprise value.
Correlation of Valuation Metrics: A strong positive correlation is observed between the market value of common equity and the Enterprise Value. The fluctuations in the company's overall valuation are primarily driven by changes in equity market value rather than shifts in the debt structure, as evidenced by the synchronized peaks and troughs of both metrics between 2014 and 2018.

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eBay Inc. (NASDAQ:EBAY)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)