eBay Inc. (EBAY) DCF Valuation
Transparent DCF models put eBay Inc. (EBAY)'s fair value in a range of $21.45 – $56.54 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $108.66 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $108.66, the market is pricing in roughly +12.7%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of -6.7%. The price is betting on acceleration above its track record.
Current Price
$108.66
Fair-Value Range
$21.45 – $56.54
Market-Implied Growth
+12.7%/yr
vs -6.7% 5Y actual
EBAY DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $1.8B · 0.44B shares · net debt $5.2B
Estimated Fair Value
$56.54
-48.0% vs $108.66
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $108.66; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $73.10 | $77.45 | $82.59 | $88.76 | $96.29 |
| 9.0% | $61.14 | $64.11 | $67.54 | $71.55 | $76.28 |
| 10.0% | $52.03 | $54.14 | $56.54 | $59.28 | $62.44 |
| 11.0% | $44.87 | $46.42 | $48.15 | $50.10 | $52.31 |
| 12.0% | $39.09 | $40.26 | $41.54 | $42.97 | $44.57 |
About eBay Inc.
eBay Inc. manages an extensive global e-commerce ecosystem designed to facilitate transactions between buyers and sellers. This framework primarily encompasses its flagship website, ebay.com, alongside its suite of dedicated mobile applications. Through these digital platforms, users are empowered to list, discover, purchase, and pay for a vast array of goods. These transactions occur across a multitude of channels—online, mobile, and even certain traditional avenues—involving a diverse array of participants. This includes individual sellers, small businesses, and larger entities such as retailers, distributors, liquidators, import/export firms, and auctioneers, often integrating with various commerce platforms, search engines, and shopping networks. The company was established in 1995 and its corporate headquarters are situated in San Jose, California.
- Sector
- Consumer Cyclical
- Industry
- Specialty Retail
- CEO
- Jamie J. Iannone