Analysis of Investment Value of E-Commerce Companies in the US: A Case Study of eBay

Shenzhen Baoan Middle School (Group), 518101 Shenzhen, China

^* Corresponding author: a127848@correo.umm.edu.mx

Abstract

This paper studies the application of value investing theories in the digital marketplace with a focus on eBay as a representative example. The paper reviews fundamental value investing principles and explores key performance metrics such as price-to-earnings ratio, price-to-book ratio, dividend yield, and debt-to-equity ratio. The study examines return expectations and risk considerations and discusses how these factors are important when evaluating companies in the digital economy. The research also provides a review of the online marketplace industry by analyzing its evolution, competitive landscape, opportunities, and challenges. The case study of eBay examines its business model, market position, and financial performance. In the case study, special attention is given to revenue trends, operating margins, cash flow strength, and the effects of regulatory as well as macroeconomic pressures on the company. Growth prospects are discussed with reference to artificial intelligence applications and sustainability initiatives in online commerce. Recommendations are provided for value investors who wish to navigate the complexities of a rapidly changing digital market. The findings suggest that despite significant challenges, eBay offers potential value investment opportunities for investors who are prepared to manage risks. This research aims to contribute to the literature by combining research review and detailed case analysis in one study.