eBay Is Overvalued Amid Guidance Overshadowing Its Q3 Positives

Summary:

  • Based on my 10-year EV-to-FCF-multiple-adjusted DCF model, eBay stock is nearly 2% overvalued at present.
  • The company achieved strong Q3 results, but management outlined Q4 and full-year 2024 guidance under the consensus estimates at the time.
  • EBAY is unlikely to deliver short-, medium-, or long-term alpha. Unless management focuses more on the dividend yield, investors are likely to divert capital elsewhere over time.

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I last covered eBay (NASDAQ:EBAY) in August, and I reaffirmed a Hold rating, primarily because the stock was certainly fairly valued (or even moderately overvalued) at the time. I mentioned I expected little upside moving forward, and this has largely


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