eBay Inc.

Methodology

eBay's marketplace business generates stable earnings from transaction fees with limited growth as the platform matures amid Amazon competition. The focus on enthusiast categories provides defensible niches but constrains total addressable market. Fair value calculations work well when acknowledging low-single-digit earnings growth from GMV stabilization and margin improvement initiatives.

Methodology

eBay trades at low PEG ratios (0.8-1.5x) reflecting minimal growth expectations and ongoing competitive pressures from Amazon and specialized marketplaces. The company's profitability improvements and share buybacks support earnings growth despite flat GMV trends. PEG appears attractive but reflects mature marketplace dynamics with limited expansion opportunities.

Methodology

eBay pays a dividend yielding 2-3% plus aggressive share repurchases totaling 6-8% annual shareholder returns, making PEGY significantly more attractive than PEG. The mature business generates substantial free cash flow for capital returns. Total shareholder yield often exceeds 8-10%, making yield-adjusted metrics more relevant than growth-based valuations for this mature marketplace.