EBAY Shares Rally 19% In A Month, Should You Buy The Stock?

We believe there is a near-equal mix of good and bad in EBAY stock given its overall Moderate operating performance and financial condition. This is aligned with the stock’s Moderate valuation because of which we think it is Fairly Priced. Here is our multi-factor assessment.

But no matter how attractive, investing in a single stock carries high risk. Trefis High Quality Portfolio and is designed to reduce stock-specific risk while giving upside exposure

Let’s get into details of each of the assessed factors but before that, for quick background: With $43 Bil in market cap, eBay operates marketplace platforms connecting buyers and sellers globally through an online marketplace and mobile apps.

[1] Valuation Looks Moderate

This table highlights how EBAY is valued vs broader market. For more details see: EBAY Valuation Ratios

[2] Growth Is Weak

• eBay has seen its top line grow at an average rate of 0.2% over the last 3 years
• Its revenues have grown 1.5% from $10 Bil to $10 Bil in the last 12 months
• Also, its quarterly revenues grew 1.1% to $2.6 Bil in the most recent quarter from $2.6 Bil a year ago.

This table highlights how EBAY is growing vs broader market. For more details see: EBAY Revenue Comparison

[3] Profitability Appears Strong

• EBAY last 12 month operating income was $2.3 Bil representing operating margin of 22.3%
• With cash flow margin of 25.1%, it generated nearly $2.6 Bil in operating cash flow over this period
• For the same period, EBAY generated nearly $2.0 Bil in net income, suggesting net margin of about 19.8%

This table highlights how EBAY profitability vs broader market. For more details see: EBAY Operating Income Comparison

[4] Financial Stability Looks Very Strong

• EBAY Debt was $7.2 Bil at the end of the most recent quarter, while its current Market Cap is $43 Bil. This implies Debt-to-Equity Ratio of 16.6%
• EBAY Cash (including cash equivalents) makes up $4.8 Bil of $19 Bil in total Assets. This yields a Cash-to-Assets Ratio of 25.3%

[4] Downturn Resilience Is Moderate

EBAY saw an impact slightly worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• EBAY stock fell 54.3% from a high of $80.59 on 22 October 2021 to $36.81 on 30 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 22 July 2025
• Since then, the stock increased to a high of $100.77 on 13 August 2025 , and currently trades at $92.51

 
2020 Covid Pandemic

• EBAY stock fell 31.6% from a high of $38.49 on 4 March 2020 to $26.34 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 24 April 2020

 
2008 Global Financial Crisis

• EBAY stock fell 74.7% from a high of $15.21 on 17 October 2007 to $3.85 on 9 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 19 April 2012

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.