FINC 330
Stock Performance
FINC 330
Project 2
Stock Performance of the Last Year
Market Ratios for the company for the last 1-3 years and its major competitor for the last year
eBay Amazon
2018 2019 2020 2020
Price/Earnings Ratio - 16.34 15.09 4.76
Market/Book ratio 11.66 9.09 15.19 19.79
Earnings per share 2.58 2.1 7.98 42.60
(basic)
Earnings per share 2.55 2.09 7.89 41.77
(diluted)
Dividends per share - .56 .64 -
EPS assesses the financial health of eBay where having a minimal difference between
the diluted and basic EPS is a positive aspect to the financial statement because it shows there is
minimal dilution in the company’s shares. Although it is important to understand that even a
seemingly marginal difference of nine cents can still be a large sum of money if there are a lot
of outstanding shares. In 2019, eBay had only a one cent difference in the basic and diluted
EPS, where even as many as $100 thousand in outstanding shares would only equate to
$1,000.00 of unavailable value for investors. However in 2020 that same amount would be nine
times more (Morningstar, 2021). eBay had a significantly better EPS in 2020 even though the
dilution was higher. eBay financials appear to be well above the industry average, where eBay’s
P/E ratio has been trending in the positive direction while the industry average is in the
Stock Performance
FINC 330
Project 2
Stock Performance of the Last Year
Market Ratios for the company for the last 1-3 years and its major competitor for the last year
eBay Amazon
2018 2019 2020 2020
Price/Earnings Ratio - 16.34 15.09 4.76
Market/Book ratio 11.66 9.09 15.19 19.79
Earnings per share 2.58 2.1 7.98 42.60
(basic)
Earnings per share 2.55 2.09 7.89 41.77
(diluted)
Dividends per share - .56 .64 -
EPS assesses the financial health of eBay where having a minimal difference between
the diluted and basic EPS is a positive aspect to the financial statement because it shows there is
minimal dilution in the company’s shares. Although it is important to understand that even a
seemingly marginal difference of nine cents can still be a large sum of money if there are a lot
of outstanding shares. In 2019, eBay had only a one cent difference in the basic and diluted
EPS, where even as many as $100 thousand in outstanding shares would only equate to
$1,000.00 of unavailable value for investors. However in 2020 that same amount would be nine
times more (Morningstar, 2021). eBay had a significantly better EPS in 2020 even though the
dilution was higher. eBay financials appear to be well above the industry average, where eBay’s
P/E ratio has been trending in the positive direction while the industry average is in the
