Friday, September 12, 2008

Fact of the Day

Ebay has a current market value (market capitalization) of about $30 billion, with no stores and no inventory.

The total combined market value of: Borders (541 stores), Barnes and Noble (800 stores), Sears/Kmart (2,200 stores) and Macy's/Bloomingdale's is about $23.4 billion, and those companies have more than 4,000 stores combined.

2 Comments:

At 9/12/2008 11:00 AM, Anonymous amit said...

I have not looked at the #s, but Market Value (MV) is a DCF calculation using a company's cash flow and a discount rate. Ebay has a high discount rate, so Ebay generates a lot more cash than the other stores.

-Amit

 
At 9/12/2008 5:40 PM, Blogger HL said...

Since eBay is a service provider and not a store, I fail to see the relevance of the comparisons. A better comparison would be with all the publishers (local, regional, and national) of those classified ad booklets for buying and selling everything from knickknacks to recreational vehicles. Their total ads per year and total market value could be compared with eBay's.

 

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