EBAYNEUTRAL

Return on Equity (ROE)

42.9%

Updated 392h ago

Sector Performance

89th percentile

EBAY

42.9%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from its shareholders' equity—a 42.9% ROE means eBay earns $0.429 for every dollar of equity.

This far exceeds the sector median of 14.2%, placing eBay in the 88th percentile among its peers, indicating superior profitability relative to the industry. However, the metric provides no trend context because both the year-over-year and quarter-over-quarter changes are listed as N/A, with a single data point of 42.9% over the last eight quarters. Without a trend, the high level of ROE alone suggests a strong current profit efficiency, but the lack of direction introduces uncertainty about whether this performance is sustainable or declining. This combination of a high static level and absent trend signals an opportunity if the ROE persists, yet elevated risk if it proves temporary. The metric supports the overall NEUTRAL verdict because the exceptional ROE is encouraging, but the missing trend prevents a confident bullish or bearish stance, requiring further investigation to confirm stability.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about EBAY?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are EBAY's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

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EBAY

42.9%

Sector Median

13.8%

Sector Avg

31.4%

How EBAY's Return on Equity (ROE) compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.