Using Charles Schwab data the TTM earnings for Ebay is 2.5B + 2.668B + 2.368B + 2.868B = 10.404B

Shares outstanding is 626M

So 10.404 B / 626 M = 15.9 EPS.

So PE is 58 / 15 = 3.86. How is Charles Schwab calculating the PE to be 21? I see they also are calculating the EPS to be 3.4. I've seen a couple other websites that are showing the same thing. Which is correct? Or are they both correct depending how it is calculated. They are just such different numbers I don't understand how they both could be correct.

1 Answer 1


The numbers you use to get ~$10B annual "earnings" appear to be revenue, not earnings. (Earnings are revenue minus expenses.)

  • Okay thank you that makes sense. I see Yahoo Finance has a PE of around 3.2. I wonder if they use Revenue to calc P/E.
    – Mwspencer
    Commented Jan 26, 2022 at 1:18
  • @Mwspencer P/E should never use revenue (that would be price to sales or P/S). There is an anomaly in some sources reporting eBay's earnings for Q2 2021 alone as more than $10B or $15 per share. I don't know the reason (glitch or definitional technicality), but that seems to explain the low P/E quoted.
    – nanoman
    Commented Jan 26, 2022 at 1:35
  • Ebay had a very anomalous 2Q2021 net income due to discontinued operations according to Yahoo - without digging any further it's possible that either that number is wrong or that Schwab is ignoring the part that's from discontinued operations (which would make sense).
    – D Stanley
    Commented Jan 26, 2022 at 14:59

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