January 3, 2019

EBAY – Market expectations are for further Uniform ROA compression, but management is confident about earnings growth, marketing, and their German platforms


  • eBay Inc. (EBAY:USA) is currently trading well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 10.2x Uniform P/E, implying bearish expectations for the firm. However, management is confident in their ability to drive earnings growth, marketing strategies, and German platforms
  • Specifically, management is confident in their ability to deliver strong earnings growth through operational margin expansion, and in their on-going marketing strategies. They are also confident that they have aggressive expansion plans for their promoted listing service, and about continued strength in their German platforms. Additionally, they are confident in their focus on driving an integrated product experience at lower cost for their sellers and providing payment choices for their buyers. Furthermore, they are confident that managing their payments flow will allow them to simplify the end-to-end experience for buyers and sellers on eBay, and about their launch of guaranteed delivery services in Australia
To read this Embedded Expectations Analysis report in its entirety, please log into the Valens Research web app. If you don't have an account, you can sign up for the 30-day trial.