The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$2,359.88||$2,560.99||$2,908.91||$3,168.30||$3,351.45|
|Source||Analyst x13||Analyst x16||Analyst x8||Analyst x4||Analyst x4|
Discounted (@ 11.2%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $3,351 × (1 + 2.47%) ÷ (11.2% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$33,471 = $10,351 + $23,120
Value = Total value / Shares Outstanding ($33,471 / 1,045)Discount to Share Price
Value per share:
Current discount (share price of $38.37): -19.75%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 11.2% = 2.47% + (1.16 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($39,275,874,901).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.16 = 0.995 (1 + (1- 35%) (25.46%))
Levered Beta used in calculation = 1.16
Mr. Devin N. Wenig has been the Chief Executive Officer and President at eBay Inc. since July 17, 2015. Mr. Wenig served as the President of Global Ebay Marketplaces Business Unit at eBay Inc. since September 6, 2011. Mr. Wenig served as the Chief Executive Officer at Thomson Reuters (Markets) LLC. Mr. Wenig served as the Chief Executive Officer of Markets Division and President of Markets Division at Thomson Reuters Corporation of Thomson Reuters UK Limited until July 31, 2011. He served as President of Business Divisions at Thomson Reuters UK Limited from 2003 to 2006 and served as its Chief Operating Officer since June 15, 2006. Mr. Wenig served as President of Customer Segments at Thomson Reuters UK Limited since February 17, 2003. He served as President of Reuters Information, the global division of Reuters covering full service information and software applications since January 2001. He served as President of Reuters Investment Banking and Brokerage Division of Thomson Reuters PLC. from 2001 to 2003, which is an affiliate of Reuters Limited and Reuters America Inc. from January 2001 to February 2003. Mr. Wenig served as Managing Director of Marketing of Reuters Information since February 2000, Executive Vice President of Marketing at Reuters America and Senior Vice President of Business Development of Reuters America. From October 1998 to February 2000, he served as an Executive Vice President of Marketing of Reuters Holding Switzerland SA. He served as an Executive Director of Thomson Reuters PLC. since February 17, 2003. He served as a Corporate Counsel of Reuters America from 1993 to June 1997. He practiced law at the New York firm of Cravath, Swaine & Moore from 1991 to 1994 as a Mergers and Acquisitions attorney. Mr. Wenig served as Chairman of the Board of Directors of Nastech Pharmaceutical Co. Inc. from June 1991 to March 1999. He has been a Director of Reuters Research Inc. since February 2000. He serves as a Director of a number of Reuter's subsidiaries and portfolio companies and NexCen Brands, Inc. He has been a Director of Instinet Group, LLC since September 2002. He serves as a Director of Predict Inc. Mr. Wenig serves as Director of New York Division at March of Dimes Foundation. He has been a Trustee of The Paley Center for Media since November 19, 2015. He served as a Director of MDRNA, Inc., since June 1991. He has been a Director at eBay Inc. since 2015. He served as a Director of IntraLinks Holdings, Inc. from July 1999 to February 2005. He served as Director for Third Party Data at Reuters from June 1997 to October 1998 and Marina Biotech, Inc. since June 1991. Mr. Wenig holds a B.A. degree from Union College and a J.D. degree from the Columbia University School of Law.
Average tenure and age of the eBay management team in years:
Average tenure and age of the eBay board of directors in years:
eBay Inc. operates commerce platforms that connect various buyers and sellers worldwide. Its platforms enable sellers to organize and offer their inventory for sale; and buyers to find and purchase it virtually. The company’s Marketplace platforms include its online marketplace at ebay.com and the eBay mobile apps; and StubHub platforms comprise its online ticket platform at stubhub.com, and the StubHub mobile apps and Ticketbis platforms that connect fans with their favorite sporting events, shows, and artists, as well as enables them to buy and sell tickets. Its Classifieds platforms include a collection of brands, such as mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen, and others, which offer online classifieds to enable people find whatever they are looking for in their local communities. The company’s platforms enable users to find, buy, sell, and pay for items through various online, mobile, and offline channels that include retailers, distributors, liquidators, import and export companies, auctioneers, catalog and mail-order companies, classifieds, directories, search engines, commerce participants, shopping channels, and networks. eBay Inc. was founded in 1995 and is headquartered in San Jose, California.
2025 Hamilton Avenue,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||EBAY||Common Stock||Nasdaq Global Select||US||USD||24. Sep 1998|
|DB||EBA||Common Stock||Deutsche Boerse AG||DE||EUR||24. Sep 1998|
|XTRA||EBA||Common Stock||XETRA Trading Platform||DE||EUR||24. Sep 1998|
|SWX||EBAY||Common Stock||SIX Swiss Exchange||CH||CHF||24. Sep 1998|
|WBAG||EBAY||Common Stock||Wiener Boerse AG||AT||EUR||24. Sep 1998|
|SNSE||EBAY||Common Stock||Santiago Stock Exchange||CL||USD||24. Sep 1998|
|BMV||EBAY *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||24. Sep 1998|
|BOVESPA||EBAY34||BDR EACH REPR 0.5 COM USD0.001||Bolsa de Valores de Sao Paulo||BR||BRL||06. Mar 2012|
|BASE||EBAY||CEDEAR EA REP 1 SHR||Buenos Aires Stock Exchange||AR||ARS||15. Jan 2014|
|Industry:||Internet Software and Services|