eBay Inc., FCFE calculation

US$ in millions

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)
Net noncash charges	708)	3,046)	(4,459)	1,258)	5,816)
Changes in assets and liabilities, net of acquisition effects	(577)	1,116)	20)	(106)	(185)
Net cash provided by operating activities	2,661)	3,146)	2,827)	2,877)	5,677)
Purchases of property and equipment	(651)	(666)	(626)	(668)	(1,271)
Proceeds from issuance of long-term debt, net	—)	2,484)	2,216)	—)	3,482)
Repayment of debt	(750)	(1,452)	(20)	(850)	—)
Free cash flow to equity (FCFE)	1,260)	3,512)	4,397)	1,359)	7,888)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to eBay Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	eBay Inc. FCFE decreased from 2016 to 2017 and from 2017 to 2018.

eBay Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	813,525,054
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,260)
FCFE per share	1.55
Current share price (P)	35.62
Valuation Ratio
P/FCFE	23.00
Benchmarks
P/FCFE, Competitors¹
Amazon.com Inc.	87.99
Home Depot Inc.	17.79
Lowe’s Cos. Inc.	16.32
TJX Cos. Inc.	28.47

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

¹ Click competitor name to see calculations.

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

eBay Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
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
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,260)	3,512)	4,397)	1,359)	7,888)
FCFE per share³	1.38	3.47	4.04	1.15	6.52
Share price^1, 4	34.08	42.37	32.03	23.94	54.50
Valuation Ratio
P/FCFE⁵	24.75	12.21	7.92	20.76	8.36
Benchmarks
P/FCFE, Competitors⁶
Amazon.com Inc.	—	—	—	—	—
Home Depot Inc.	—	—	—	—	—
Lowe’s Cos. Inc.	—	—	—	—	—
TJX Cos. Inc.	—	—	—	—	—

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 See details »

³ 2018 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,260,000,000 ÷ 914,880,451 = 1.38

⁴ Closing price as at the filing date of eBay Inc. Annual Report.

⁵ 2018 Calculation
P/FCFE = Share price ÷ FCFE per share
= 34.08 ÷ 1.38 = 24.75

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	eBay Inc. P/FCFE ratio increased from 2016 to 2017 and from 2017 to 2018.

eBay Inc. (NASDAQ:EBAY)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical