eBay Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net income (loss)	2,530)	(1,016)	7,266)	1,725)	46)
Net noncash charges	708)	3,046)	(4,459)	1,258)	5,816)
Changes in assets and liabilities, net of acquisition effects	(577)	1,116)	20)	(106)	(185)
Net cash provided by operating activities	2,661)	3,146)	2,827)	2,877)	5,677)
Cash paid for interest, net of tax¹	292)	185)	143)	142)	1)
Purchases of property and equipment	(651)	(666)	(626)	(668)	(1,271)
Free cash flow to the firm (FCFF)	2,302)	2,665)	2,344)	2,351)	4,407)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the eBay Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	eBay Inc. FCFF increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.

eBay Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Effective Income Tax Rate (EITR)
EITR¹	6.99%	35.00%	35.00%	19.08%	98.70%
Interest Paid, Net of Tax
Cash paid for interest, before tax	314)	285)	220)	175)	99)
Less: Cash paid for interest, tax²	22)	100)	77)	33)	98)
Cash paid for interest, net of tax	292)	185)	143)	142)	1)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

¹ See details »

² 2018 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 314 × 6.99% = 22

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eBay Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	33,294)
Free cash flow to the firm (FCFF)	2,302)
Valuation Ratio
EV/FCFF	14.46
Benchmarks
EV/FCFF, Competitors¹
Amazon.com Inc.	53.71
Home Depot Inc.	23.64
Lowe’s Cos. Inc.	25.40
TJX Cos. Inc.	30.10

Based on: 10-K (reporting date: 2018-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

eBay Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	35,495)	47,034)	36,629)	28,866)	63,477)
Free cash flow to the firm (FCFF)²	2,302)	2,665)	2,344)	2,351)	4,407)
Valuation Ratio
EV/FCFF³	15.42	17.65	15.63	12.28	14.40
Benchmarks
EV/FCFF, Competitors⁴
Amazon.com Inc.	—	—	—	—	—
Home Depot Inc.	—	—	—	—	—
Lowe’s Cos. Inc.	—	—	—	—	—
TJX Cos. Inc.	—	—	—	—	—

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

¹ See details »

² See details »

³ 2018 Calculation
EV/FCFF = EV ÷ FCFF
= 35,495 ÷ 2,302 = 15.42

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	eBay Inc. EV/FCFF ratio increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.

eBay Inc. (NASDAQ:EBAY)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical