Is the business good?
How good a business is EBAY?
eBay Inc. earns 23% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
23%
Return on invested capital · cost of capital 9.0% · 14 points above what the capital costs: growth creates value
- Operating margin
- 21%
Operating margin · Internet Retail median 7.6% · 12 months to Q2 2026
- Cash conversion
- 1.09×
Cash conversion · 0.65× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −3.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 30% |
| FY2021 | 28% |
| FY2022 | 24% |
| FY2023 | 19% |
| FY2024 | 23% |
| FY2025 | 21% |
Details›
- Gross margin12 months to Q2 2026
- 72%
- Operating margin12 months to Q2 2026
- 21%
- Net margin12 months to Q2 2026
- 19%
- Free cash flow margin
- 20%
- R&D as % of revenue
- 15%
- Revenue, trailing twelve months
- $12.0B
- Free cash flow, trailing twelve months
- $2.43B
- Net income, trailing twelve months
- $2.22B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 23%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Internet Retail
Ranks #2 of 18 by Smart Score