BABAF - eBay: Forgotten Online Retail Gem Approaching 10-Year Low Valuation
2024-05-21 05:07:35 ET
Summary
- eBay is trading just above November's lowest valuation in a decade, using enterprise value calculations.
- A liquid balance sheet with $10 billion in cash and investments vs. $15 billion in total liabilities provides plenty of flexibility to achieve future business growth.
- Some of the highest online retail business margins/returns are available on the cheap for smart investors.
One of the early technology-boom Dotcom (online) favorites in the late 1990s, eBay ( EBAY ) has witnessed declining valuation metrics since 1999. Over the last decade, several management teams have spun off the PayPal ( PYPL ) online money handling unit (2015), while outright selling various divisions and asset investments globally to repay debt and buy back shares. These efforts to refocus on its bread-and-butter eBay online website have helped "per share" results to grow rapidly over this span (roughly +200% from 2015 for sales and income), but the stock quote has only risen marginally in response (around +150% for share price gains since 2014)....
eBay: Forgotten Online Retail Gem, Approaching 10-Year Low Valuation