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Tu Nguyen
John Koong
Naco Chen
George Chou
eBay’s mission is to build the
world’s most efficient and
abundant marketplace in which
anyone, anywhere, can buy or sell
practically anything.
History
eBay Inc. was formed as a sole
proprietorship in September 1995
and was incorporated in California
in May 1996. In April 1998, eBay
reincorporated in Delaware and in
September 1998 eBay completed
the initial public offering of their
common stock.
Present
As of December 31, 2003, through wholly
owned and majority-owned subsidiaries
and affiliates, eBay had Websites directed
toward the United States, Australia,
Austria, Belgium, Canada, China, France,
Germany, Hong Kong, Ireland, Italy, The
Netherlands, New Zealand, Singapore,
South Korea, Spain, Sweden, Switzerland,
Taiwan and the United Kingdom.
38th
Richest
person in
the world
with net
worth of
$5 billion
according
to Forbes
Founder & Chairman
Pierre M. Omidyar founded eBay
as a sole proprietorship in
September 1995. He has been a
director and Chairman of the
Board since eBay's incorporation
in May 1996 and also served as
its Chief Executive Officer, Chief
Financial Officer and President
from inception to February 1998,
November 1997 and August
1996, respectively.
Officers & Compensation
Whitman, Margaret C……………………………… $2,191,976.00
President & CEO
Bannick, Matthew J. ………………………………………
Senior Vice President and General Manager, Global $1,021,605.00
Online Payments and Chief Executive Officer of
PayPal
Cobb, William C. …………………………………………….
Senior Vice President and General Manager, eBay
International $753,591.00
Webb, Jr., Maynard G………………………………
Chief Operating Officer
Jordan, Jeffrey D…………………………………….
Senior Vice President, eBay North America $1,849,617.00
$1,298,928.00
Profile
eBay Inc. developed an Internet-based
community in which buyers and sellers
are brought together to buy and sell
almost anything. The eBay online
service permits sellers to list items for
sale, buyers to bid on items of interest
and all eBay users to browse through
listed items in a fully automated,
topically arranged service that is
available online seven days a week.
Online Auction
REVENUE BY PRODUCT CATEGORIES
(by percentage)
INDUSTRIAL
CAMERAS 4%
4%
JEWELRY
5%
MOTORS
TOYS 29%
5%
HOME/GARDEN
6%
COLLECTIBLES J
6%
SPORTS COMPUTERS
7% 9%
MOVIES/MUSICS CONSUMERS/ELECTRONICS
8%
CLOTHING/ACCESSORIES
9%
8%
INDUSTRY COMPARISON OF RETAIL SPECIALTY MARKETS
$60,000.00
$50,000.00
DOLLARS (millions)
$40,000.00
$30,000.00
MARKET CAPITAL
$20,000.00
$10,000.00
$-
AY O
N
T C
LES T H
A ND
EB AZ O
S AP B
D YO
AM C O ST E
B BE
COMPANY &
INDUSTRY COMPARISON OF RETAIL SPECIALTY MARKETS
STAPLES
12%
EBAY
46%
COSTCO
16%
AMAZON
17%
Growth rates % (Strength)
Compan Industry S&P 500
y
Sales 58.70 27.80 11.20
(Qtr vs year ago qtr)
EPS (YTD vs YTD) 92.10 NA 31.20
EPS (Qtr vs year ago qtr) 92.10 NA 31.20
Sales 82.55 16.51 5.12
(5-Year Annual Avg.)
EPS 109.17 NA -3.24
(5-Year Annual Avg.)
Dividends NA NA 1.71
(5-Year Annual Avg.)
Price Ratios
Price Ratios (Strength)
Company Industry S&P 500
Volume: 6,410,703
Change: 1.14 (1.43%)
Avg Vol (3m): 8,776,227
Prev Close: 79.47
Market Cap: 51.49B
Open: 79.29
P/E (ttm): 82.11
Bid: 46.61 x 100
EPS (ttm): 0.954
Ask: 110.29 x 100 Div & Yield: N/A
Holding Period Return
2004 2003 2002 2001 2000
(12/31)
Background Analysis:
Earnings 0.5906
growth
rate
estimate
(2004)
Dividend 0 0 0 0 0
Price 86.71 64.61 33.91 33.45 33
HPR 0.3421 0.9053 0.0138 0.0136
(expected)
Free Cash Flow to Equity
2004 2003 2002 2001 2000
0 .2 5 M&M 0 .2 2 7 8
0 .2
0 .1 5 0 .1 4 0 2
WACC
W A CC
0 .1
0 .0 7 9 2
0 .0 5
0
0 .1 0 .1 2 0 .1 4 0 .1 6 0 .1 8
D /T A
Current Capital Structure Industry Capital Structure
18%
Equity Equity
Debt Debt
100% 82%
Strengths
High growth
Positive HPR
Very low debt
Under priced
High profit margins
Weakness
Return on Equity
Beta slightly high
Expert Analyst
Conclusion
We recommend that
investors BUY shares of
eBay common stock