PEG Ratio

The PEG ratio (price-to-earnings divided by earnings growth rate) of 8.15x means that for each percentage point of expected earnings growth, investors are paying $8.15 — a level that typically signals a very expensive growth expectation.

This far exceeds the sector median of 1.00x, placing EBAY in the 93rd percentile among peers, indicating it is priced well above the typical sector peer on a growth-adjusted basis. Year-over-year change is not available, but the quarter-over-quarter change of -30.8% shows a sharp decline from the prior quarter’s 11.78x, moving the ratio toward a more moderate level. The combination of a still-high absolute PEG ratio with a large quarterly drop suggests that while the stock remains richly valued relative to peers, the compression trend could reduce downside risk if growth expectations hold or improve. This metric contradicts the overall NEUTRAL verdict, as the elevated percentile rank and high absolute level imply above-average valuation risk that would normally tilt toward bearish. However, the improving trend tempers that contradiction, supporting the neutral stance by showing the valuation gap is narrowing.

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