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GuruFocus has detected 5 Warning Signs with eBay Inc \$EBAY.
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eBay Inc (NAS:EBAY)
Median PS Value
\$16.91 (As of Today)

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median P/S Value is calculated as trailing twelve months (TTM) revenue per share times 10-Year median P/S ratio. eBay Inc's revenue per share for the trailing twelve months (TTM) ended in Mar. 2017 was \$7.993. eBay Inc's 10-Year median P/S ratio is 2.12. Therefore, the Median P/S Value for today is \$16.91.

As of today, eBay Inc's share price is \$33.06. eBay Inc's median P/S value is \$16.91. Therefore, eBay Inc's Price to Median P/S Value Ratio for today is 1.96.

EBAY' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.39   Max: 24.88
Current: 1.96

0.39
24.88

During the past 13 years, the highest Price to Median P/S Value Ratio of eBay Inc was 24.88. The lowest was 0.39. And the median was 1.72.

EBAY's Price-to-Median-PS-Value is ranked lower than
90% of the 729 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.04 vs. EBAY: 1.96 )

Definition

eBay Inc's Median P/S Value for today is calculated as

 Median P/S Value = Total Annual Sales / Shares Outstanding * 10-Year Median P/S Ratio = Revenue per Share (TTM) * 10-Year Median P/S Ratio = 7.993 * 2.12 = 16.95

10-Year Median P/S Ratio is 2.12.
eBay Inc's revenue per share for the trailing twelve months (TTM) ended in Mar. 2017 was 1.941 (Jun. 2016 ) + 1.946 (Sep. 2016 ) + 2.094 (Dec. 2016 ) + 2.012 (Mar. 2017 ) = \$7.993.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the companys value.

eBay Inc's Price to Median P/S Value Ratio for today is calculated as

 Price to Median P/S Value = Share Price / Median P/S Value = 33.06 / 16.95 = 1.95

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

eBay Inc Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 medpsvalue 11.82 13.69 14.18 14.58 18.76 22.70 13.29 21.48 14.84 16.51

eBay Inc Quarterly Data

 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 medpsvalue 21.48 17.96 14.75 14.75 14.84 15.16 15.62 16.11 16.51 16.91
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