GigaWealth

GigaWealth The classical approach to investing

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

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%+.

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%+.

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.

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.

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