EBay Return On Asset vs. Price To Sales
| EBAY34 Stock | BRL 197.40 0.89 0.45% |
For EBay profitability analysis, we use financial ratios and fundamental drivers that measure the ability of EBay to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well eBay Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between EBay's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of eBay Inc over time as well as its relative position and ranking within its peers.
EBay |
eBay Inc Price To Sales vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining EBay's current stock value. Our valuation model uses many indicators to compare EBay value to that of its competitors to determine the firm's financial worth. eBay Inc is rated # 3 in return on asset category among its peers. It is rated # 4 in price to sales category among its peers fabricating about 199.41 of Price To Sales per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value EBay by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for EBay's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.EBay Price To Sales vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
EBay |
| = | 0.064 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
EBay |
| = | 12.76 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
EBay Price To Sales Comparison
EBay is rated # 3 in price to sales category among its peers.
EBay Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in EBay, profitability is also one of the essential criteria for including it into their portfolios because, without profit, EBay will eventually generate negative long term returns. The profitability progress is the general direction of EBay's change in net profit over the period of time. It can combine multiple indicators of EBay, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
eBay Inc. operates marketplace platforms that connect buyers and sellers worldwide. The company was founded in 1995 and is headquartered in San Jose, California. EBAY DRN operates under Internet Retail classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 12700 people.
EBay Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on EBay. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of EBay position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the EBay's important profitability drivers and their relationship over time.
Use EBay in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if EBay position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in EBay will appreciate offsetting losses from the drop in the long position's value.EBay Pair Trading
eBay Inc Pair Trading Analysis
The ability to find closely correlated positions to EBay could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace EBay when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back EBay - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling eBay Inc to buy it.
The correlation of EBay is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as EBay moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if eBay Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for EBay can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your EBay position
In addition to having EBay in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Wholesale Thematic Idea Now
Wholesale
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Wholesale theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Wholesale Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in EBay Stock
When determining whether eBay Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of EBay's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ebay Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ebay Inc Stock:Check out Investing Opportunities. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
To fully project EBay's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of eBay Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include EBay's income statement, its balance sheet, and the statement of cash flows.