COSTCO. STAPLES. BED BATH & BEYOND. COMPANY. INDUSTRY COMPA

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• Thinh Tran
• Tu Nguyen
• John Koong
• Naco Chen
• George Chou

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• eBays mission is to build the worlds most
  efficient and abundant marketplace in which
  anyone, anywhere, can buy or sell practically
  anything.

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History

• eBay Inc. was formed as a sole proprietorship in
  September 1995 and was incorporated in California
  in May 1996. In April 1998, eBay reincorporated
  in Delaware and in September 1998 eBay completed
  the initial public offering of their common stock.

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Present

• As of December 31, 2003, through wholly owned
  and majority-owned subsidiaries and affiliates,
  eBay had Websites directed toward the United
  States, Australia, Austria, Belgium, Canada,
  China, France, Germany, Hong Kong, Ireland,
  Italy, The Netherlands, New Zealand, Singapore,
  South Korea, Spain, Sweden, Switzerland, Taiwan
  and the United Kingdom.

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• 38th Richest person in the world with net worth
  of 5 billion according to Forbes

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Founder Chairman

• Pierre M. Omidyar founded eBay as a sole
  proprietorship in September 1995. He has been a
  director and Chairman of the Board since eBay's
  incorporation in May 1996 and also served as its
  Chief Executive Officer, Chief Financial Officer
  and President from inception to February 1998,
  November 1997 and August 1996, respectively.

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Officers Compensation

• Whitman, Margaret C
• President CEO
• Bannick, Matthew J.
• Senior Vice President and General Manager, Global
  Online Payments and Chief Executive Officer of
  PayPal
• Cobb, William C. .
• Senior Vice President and General Manager, eBay
  International
• Webb, Jr., Maynard G
• Chief Operating Officer
• Jordan, Jeffrey D.
• Senior Vice President, eBay North America

• 2,191,976.00
• 1,021,605.00
• 753,591.00
• 1,849,617.00
• 1,298,928.00

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Profile

• eBay Inc. developed an Internet-based community
  in which buyers and sellers are brought together
  to buy and sell almost anything. The eBay online
  service permits sellers to list items for sale,
  buyers to bid on items of interest and all eBay
  users to browse through listed items in a fully
  automated, topically arranged service that is
  available online seven days a week.

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Online Auction
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INDUSTRY COMPARISON OF RETAIL SPECIALTY MARKETS
60,000.00
50,000.00
40,000.00
30,000.00
DOLLARS (millions)
MARKET CAPITAL
20,000.00
10,000.00
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EBAY
AMAZON
COSTCO
STAPLES
BED BATH BEYOND
COMPANY
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Growth rates (Strength)
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Price RatiosPrice Ratios (Strength)
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Profit Margins (Strength)
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Financial Condition (Strength)
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Investment Returns (Weakness)
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Management Efficiency (Strength)
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Market Capitalization
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Holding Period Return
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Free Cash Flow to Equity
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Risk Analysis
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Discounted Cash Flow Model
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CAPM
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Market Efficiency

• June 23, 2004. Ebay announces the eBay solutions
  directory, a new online directory of software and
  services that supports trading activity on the
  Worlds Online Marketplace.
• WEAK FORM

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• June 3, 2004 OPEC announces oil production
  increase up to 2 million barrels a day in July
  2004.
• NO FORM

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Cost of Capital and Optimal Capital Structure
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MM
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Current Capital Structure
Industry Capital Structure
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Equity
Equity
Debt
Debt
82
100
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Strengths

• High growth
• Positive HPR
• Very low debt
• Under priced
• High profit margins

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Weakness

• Return on Equity
• Beta slightly high

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Expert Analyst
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Conclusion

• We recommend that investors BUY shares of eBay
  common stock