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How does this work?
A valuation is an assessment of the value of one share in a company, it is not necessarily the same as the price listed in the sharemarket. You can use a variety of methods to value a company, Valuecruncher uses Discounted Cash Flow (DCF) analysis to help people create the valuations you see below.
Valuecruncher Valuation
33.06%
from latest share price
Your Valuation
| Valuation | Compared to price | Member |
 Created
|
Views |
|---|---|---|---|---|
| $15.98 |
33.06%
|
Valuecruncher | 23 Nov 2008 | 0 |
| $23.88 |
6.7%
|
TheCrunchBlog | 01 Oct 2008 | 118 |
| $22.34 |
11.98%
|
GordonGekko | 01 Oct 2008 | 19 |
| $28.13 |
 -0.88%
|
TheCrunchBlog | 17 Jun 2008 | 164 |
| $28.82 |
1.55%
|
GordonGekko | 15 Jun 2008 | 33 |
| $49.15 |
57.03%
|
BudFox1987 | 28 Apr 2008 | 46 |
| $21.15 |
-32.43%
|
JStew82 | 28 Apr 2008 | 38 |
| $27.65 |
-11.66%
|
GordonGekko | 28 Apr 2008 | 35 |
Recent Comments
| Updated: | 3 hours ago |
| Ticker: | EBAY |
| Market: | NASD |
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/10/running-the-numbers-ebay-looks-cheap-even-with-all-the-negatives/
Our assumptions are revenues of US$9.0 billion in 2008 growing to US$11.0 billion in 2010. We have used an EBITDA margin of 36.5% in 2008 decreasing to 35.0% in 2010. Our terminal growth rate is 3.75%. We used a terminal capital expenditure number of US$800 million. Our WACC (discount rate) is 11.0%. All of these assumptions can be amended in the Valuecruncher on-line valuation model to adjust the valuation.
This valuation forms part of this blog post:
http://blog.valuecruncher.com/2008/06/is-ebay-ebay-underpriced/
Our assumptions are revenues of US$9.0 billion in 2008 growing to US$11.5 billion in 2010. We have used a flat EBITDA margin of 37.5% from 2008. We have used a terminal growth rate of 4.8%. We calculated this terminal growth rate based on year three growth of 12.2% dropping to a 4% stable growth rate by year 10. We used a terminal capital expenditure number of US$800 million. We have used a WACC (discount rate) of 11.5%.
Our analysis incorporates the cash on the eBay balance sheet – Valuecruncher calculates a net debt number. Our analysis also incorporates Skype within the current eBay structure. It is possible that eBay will decide to sell the Skype business (Yahoo, Google and Microsoft have been suggested as possible acquirers). There may be a higher value owner of Skype than eBay – but until that situation is clarified we have kept Skype where it is.
Gurufocus users think EBAY could be worth US$49 a share. This valuation should shows the kind of assumtions behind a shareprice of US$49.
http://www.gurufocus.com/StockBuy.php?symbol=EBAY