Ebay Financial Analysis
EBAY, INC.
BUAD 341.00, MWF 11:00A
CARMEN CANDELARIA
May 3, 2013
Table of Contents
Introduction 1
Theme 1
Product Line of the Company 3
Industry History and Analysis 3
Major Competitors 4
NAICS Numbers 4
Relative Sales 4
Relative Returns 5
Product Life Cycle 5
Stock Performance 6
Financial Analysis 7
Ratio Analysis 8
Pro forma 8
Assumptions 8
Growth Rate of Sales 9
Asset Acquisitions 9
Financing Needs 9
Conclusion 9
Appendices 10
Income Statement 10
Sources 14
Uses 15
Firm Ratios 16
Industry Ratios 17
Graphs of Ratios 18
Graphs of Ratios 19
Bibliography 20
Introduction
This paper will provide a historical analysis for EBay, who operates the world’s largest online trading community. The analysis will show EBay’s main competitors and assuming the historical trend persists, I will be able to generate a three year forecast that will explain the company’s ever rising financial situation and steady outlook as a leader of its industry.
Theme
EBay operates the world’s largest online trading community. As of the end of 2012, their marketplaces’ segment had over 110 million users. EBay is concentrating on making their user base even larger. eBay has been able to correctly predict the increases in the current and future markets for their Marketplaces segments and payments business (PayPal) showing substantial growth for their online ecommerce industry. Although EBay bottomed in 2009, reflecting the economic difficulties, notable retooling of and investment in the core marketplaces businesses across the world and less favorable revenue mix. It is noted that a negative impact from its acquisition in 2012 and definitely foresee annual improvements in 2013 through 2015. In the past several years, eBay has shown increases in all areas of their business.[1]
History of
BUAD 341.00, MWF 11:00A
CARMEN CANDELARIA
May 3, 2013
Table of Contents
Introduction 1
Theme 1
Product Line of the Company 3
Industry History and Analysis 3
Major Competitors 4
NAICS Numbers 4
Relative Sales 4
Relative Returns 5
Product Life Cycle 5
Stock Performance 6
Financial Analysis 7
Ratio Analysis 8
Pro forma 8
Assumptions 8
Growth Rate of Sales 9
Asset Acquisitions 9
Financing Needs 9
Conclusion 9
Appendices 10
Income Statement 10
Sources 14
Uses 15
Firm Ratios 16
Industry Ratios 17
Graphs of Ratios 18
Graphs of Ratios 19
Bibliography 20
Introduction
This paper will provide a historical analysis for EBay, who operates the world’s largest online trading community. The analysis will show EBay’s main competitors and assuming the historical trend persists, I will be able to generate a three year forecast that will explain the company’s ever rising financial situation and steady outlook as a leader of its industry.
Theme
EBay operates the world’s largest online trading community. As of the end of 2012, their marketplaces’ segment had over 110 million users. EBay is concentrating on making their user base even larger. eBay has been able to correctly predict the increases in the current and future markets for their Marketplaces segments and payments business (PayPal) showing substantial growth for their online ecommerce industry. Although EBay bottomed in 2009, reflecting the economic difficulties, notable retooling of and investment in the core marketplaces businesses across the world and less favorable revenue mix. It is noted that a negative impact from its acquisition in 2012 and definitely foresee annual improvements in 2013 through 2015. In the past several years, eBay has shown increases in all areas of their business.[1]
History of
Bibliography: 1. Hoover 's.com. (2001, 1 January). Retrieved February 15, 2013, from Hoovers: http://www.lexisnexis.com.navigator-millersville.passhe.edu/hottopics/lnacademic/?shr=t&sfi=AC02NBCmpDosSrch 2 3. EBay Historical Prices. (2008, December 31). Retrieved April 5, 2013, from Yahoo Finance: https://www.google.com/finance?q=NASDAQ%3AEBAY&ei=zdSFUdjHJKbSlgPZZg 4 5. Bureau of Economic Analysis. (2012, September 15). Retrieved March 4, 2013, from BEA.gov: http://www.bea.gov/azindex/index.htm 6 7. Edgar. (2012, September 19). Retrieved March 5, 2013, from US Securities and Exhange Commission: http://www.sec.gov/cgi-bin/browse-edgar?company=eBay&match=&CIK=&filenum=&State=&Country=&SIC=&owner=exclude&Find=Find+Companies&action=getcompany 8 9. YCharts. (2012, December 31). Retrieved March 24, 2013, from ycharts.com: http://ycharts.com/companies/EBAY 10 11. Financial Information for EBAY. (2013, January 1). Retrieved May 5, 2013, from Reuters.com: http://www.reuters.com/finance/global-market-data 12 13. Leo, T. (1997, March 15). Almanac of Business and Industrial financial ratios. Almanac of Business and Industrial financial ratios, p. 236. 14. Stepehen A. Ross, R. W. (2010). Fundamental of Corporate Finance. In R. W. Stepehen A. Ross, & Ninth (Ed.), Fundamental of Corporate Finance (pp. 50-65). New York, NY, US: McGraw Hill Irwin. [2] Standard and Poors Industry. (2006, August 24). Retrieved March 10, 2013, from S&P.com: http://finance.yahoo.com/q/hp?s=EBAY&a=11&b=31&c=2008&d=11&e=31&f=2012&g=m [3] Hoover 's.com [6] Bureau of Economic Analysis. (2012, September 15). Retrieved March 4, 2013, from BEA.gov: http://www.bea.gov/azindex/index.htm.