eBay Inc. (EBAY)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-26 close of $118.62, eBay is a mature marketplace with real cash generation but a demanding price. In fiscal Q2 2026 (quarter ended 2026-06-30), revenue was $3.1B, net income $550M, and diluted EPS $1.21, above fiscal Q2 2025's $2.7B, $364M, and $0.78. FY2025 revenue was $11.1B versus $10.3B in FY2024, while net income was about $2.0B in both years, so top-line progress has not translated into much annual profit growth. The business quality is mixed. FairStock's ROE of 46.61% looks strong, but ROCE of 9.15% is modest and D/E of 1.53 means leverage flatters equity returns. Free cash flow of $2.4B and a 4.6% FCF yield are respectable; Altman Z of 5.88 and Piotroski 6/9 suggest reasonable financial footing. The marketplace network is a real asset, but eBay operates in a competitive internet retail sector and FairStock labels it a TURNAROUND—returned to profit after a loss within the last three years—so I would demand evidence that the improvement is durable. Valuation is the rub. FairStock calculations at the close show P/E 24.92, P/B 11.32, EV/EBITDA 18.40, and Graham Number $33.50 against the $118.62 price, a -262.42% margin of safety. PEG of 0.50 hints at growth support, but Graham's asset/earnings anchor says the stock is far from cheap. I see a decent business at a full price, not a margin-of-safety bargain.

In plain English: eBay runs online marketplaces where people buy and sell things. It is profitable and produces cash, so the business looks reasonably strong, but sales and profits have moved unevenly and the share price looks full compared with the company's assets and earnings. It looks like a good business at a high price rather than a bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer