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Name: eBay Inc.
Description:
 
EBAY 3Q Earnings - Bloomberg
 
 
 
Step 1. Review the Company Analysis   (Show detailed report)
 
1. Importance Important   EBAY is a pioneer in using the internet to help consumers buy and sell goods. They are a bellweather for the industry.
2. Wisdom Important   As EBAY goes, so goes the industry.
3. Knowledge Important   EBAY's revenue growth needs to increase at least 10% year over year, and its profit at least 15% year over year, for the stock price to increase significantly.
4. Current Assessment Fair   EBAY continues to have a strong brand name in an active and growing segment of the market. It faces extreme competition though and thus will find it difficult to consistently increase revenues and profits.
5. Future Assessment Fair   The highest probability is that EBAY will experience little or no growth in revenues, profits or market share given the continued challenges in the US and world economy and the difficulty for consumers to spend.
 
 
Step 2. Consider the Future Assessment Probabilities, Reasons and Explanations
 
   Possible Outcome Probability Value Reasons and Explanations
1. Awesome   10% 10%+ EBAY finds new markets, adds new product lines, acquires new companies that fuel its growth. Revenues grow 10%+, profits grow 15%+, and market share grows 5%+.
2. Good   10% 5%+ EBAY finds new markets, adds new product lines, acquires new companies that fuel its growth. Revenues grow 5%+, profits grow 7.5%+, and market share grows 2%+.
3. Fair   60% 1%+ EBAY finds cannot find new markets, add new product lines or acquire new companies. Revenues grow 1%+, profits grow 1%+. However, market share doesn't grow.
4. Bad   10% <1% EBAY's business is suffering both from the economy and its corporate strategy. Revenues grows less than 1%, profits grow less than 1%, and market share is flat or shrinks slightly.
5. Terrible   10% <-5% EBAY's business is hurting badly. The economy is in a significant protracted recession, the corporate strategy is unable to react to the market shifts. Revenues decrease 5%, profits decrease 5%, and market share decreases 5%.
 
 
Step 3. Consider the Key Performance Indicators

Key Performance Indicator Analysis Summary   
Key Performance Indicator Importance   Current Assessment   Future Assessment  
1. Average collection period     Important   Good   Fair
2. Business Operations     Important   Fair   Good
3. Business Strategy     Important   Fair   Bad
4. Current Ratio     Important   Fair   Good
5. Debt ratio     Important   Fair   Fair
6. Debt to equity ratio     Important   Fair   Fair
7. Fixed asset turnover     Important   Fair   Fair
8. Fixed charge coverage     Important   Fair   Fair
9. Gearing Ratio     Important   Good   Fair
10. Gross Profit Margin     Important   Fair   Fair
11. Inventory turnover     Important   Fair   Good
12. Management Team     Important   Fair   Good
13. Market share ranking     Important   Fair   Fair
14. Net profit margin     Important   Bad   Fair
15. Quick Ratio     Important   Fair   Fair
16. Return on Equity (ROE)     Important   Fair   Fair
17. Return on investment (ROI)     Important   Good   Good
18. Revenue Growth     Important   Fair   Fair
19. Times interest earned     Important   Bad   Fair
20. Total asset turnover     Important   Fair   Fair
21. Working capital     Important   Fair   Fair
 
Do you agree with the analysis?
Should you continue to search for investments?
 
 
Step 4. Continue your search for investments by following one of the links below

Security Analysis Summary   (Show assessment details)
Security Importance   Current Assessment   Future Assessment  
1. eBay Inc. Stock     Important   Fair   Fair
 
 
 


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