eBay Inc (EBAY) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 3, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 6, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the EBAY SEC filings page.
eBay Inc (EBAY) reported $12.0B in revenue over the twelve months to Jun 30, 2026, up 14.7% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
eBay remains profitable, but FY2025 shows growth becoming less cash-generative while shareholder distributions tighten the balance sheet.
Revenue rose8.0% in FY2025, yet free cash flow fell to$1.4B . Its free-cash-flow margin dropped from19.0% to12.9% , indicating that more sales were absorbed before becoming cash after capital spending.
Gross margin held near
The balance sheet is becoming less liquid: the current ratio fell to 1.1x from 1.2x. Debt-to-equity rose to 1.3x while buybacks totaled
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of eBay Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
eBay Inc has an operating margin of 20.5%, meaning the company retains $21 of operating profit per $100 of revenue. This strong profitability earns a score of 87/100, reflecting efficient cost management and pricing power. This is down from 22.5% the prior year.
eBay Inc's revenue grew 7.9% year-over-year to $11.1B, a solid pace of expansion. This earns a growth score of 49/100.
eBay Inc has a moderate D/E ratio of 1.34. This balance of debt and equity financing earns a leverage score of 37/100.
eBay Inc's current ratio of 1.10 is below the typical benchmark, resulting in a score of 24/100. This tight liquidity could limit financial flexibility if cash inflows slow.
eBay Inc converts 12.9% of revenue into free cash flow ($1.4B). This strong cash generation earns a score of 80/100.
eBay Inc earns a strong 45.3% return on equity (ROE), meaning it generates $45 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 84/100. This is up from 38.3% the prior year.
eBay Inc scores 6.45, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
eBay Inc passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, eBay Inc generates $0.96 in operating cash flow ($2.0B OCF vs $2.0B net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
eBay Inc earns $9.26 in operating income for every $1 of interest expense ($2.3B vs $246.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
eBay Inc generated $3.1B in revenue in Q2 2026. This represents an increase of 14.8% from the same quarter a year earlier. Against the prior quarter it is up 1.5%.
eBay Inc's EBITDA was $777.0M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 39.2% from the same quarter a year earlier. Against the prior quarter it is up 10.4%.
eBay Inc reported $550.0M in net income in Q2 2026. This represents an increase of 51.1% from the same quarter a year earlier. Against the prior quarter it is up 7.4%.
eBay Inc earned $1.21 per diluted share (EPS) in Q2 2026. This represents an increase of 55.1% from the same quarter a year earlier. Against the prior quarter it is up 8.0%.
Cash & Balance Sheet
eBay Inc generated $300.0M in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 168.0% from the same quarter a year earlier. Against the prior quarter it is down 66.6%.
eBay Inc held $2.3B in cash against $5.1B in long-term debt as of Q2 2026.
Not reported for Q2 2026.
Margins & Returns
eBay Inc's gross margin was 73.5% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is up 0.9 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.6 percentage points.
eBay Inc's operating margin was 21.6% in Q2 2026, reflecting core business profitability. This is up 4.0 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.8 percentage points.
eBay Inc's net profit margin was 17.5% in Q2 2026, showing the share of revenue converted to profit. This is up 4.2 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.0 percentage points.
eBay Inc's ROE was 11.8% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 3.9 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.2 percentage points.
Capital Allocation
eBay Inc invested $484.0M in research and development in Q2 2026. This represents an increase of 7.1% from the same quarter a year earlier. Against the prior quarter it is up 7.6%.
eBay Inc spent $323.0M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 48.2% from the same quarter a year earlier. Against the prior quarter it is down 33.5%.
eBay Inc invested $223.0M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 120.8% from the same quarter a year earlier. Against the prior quarter it is up 209.7%.
EBAY Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $3.1B+14.8% | $3.1B+19.5% | $3.0B+15.0% | $2.8B+9.5% | $2.7B+6.1% | $2.6B+1.1% | $2.6B+0.7% | $2.6B+3.0% |
| Cost of Revenue | $832.0M+10.9% | $802.0M+15.1% | $901.0M+25.5% | $821.0M+12.9% | $750.0M+2.0% | $697.0M-0.4% | $718.0M+1.1% | $727.0M+3.1% |
| Gross Profit | $2.3B+16.3% | $2.3B+21.1% | $2.1B+10.9% | $2.0B+8.1% | $2.0B+7.8% | $1.9B+1.7% | $1.9B+0.5% | $1.8B+3.0% |
| R&D Expenses | $484.0M+7.1% | $450.0M+14.5% | $374.0M-0.3% | $423.0M+13.1% | $452.0M+19.3% | $393.0M+12.0% | $375.0M-6.0% | $374.0M-6.7% |
| SG&A Expenses | $306.0M-17.5% | $410.0M+57.1% | $284.0M+17.8% | $282.0M+45.4% | $371.0M+53.9% | $261.0M+9.7% | $241.0M-34.0% | $194.0M-31.4% |
| Operating Income | $676.0M+41.1% | $611.0M0.0% | $611.0M+12.5% | $576.0M-3.2% | $479.0M-12.8% | $611.0M-3.2% | $543.0M+32.4% | $595.0M+30.8% |
| EBITDA | $777.0M+39.2% | $704.0M+6.2% | $740.0M+10.8% | $737.0M+7.3% | $558.0M-10.9% | $663.0M-6.2% | $668.0M+22.3% | $687.0M+24.5% |
| Interest Expense | $65.0M+4.8% | $61.0M0.0% | $61.0M-6.2% | $62.0M-1.6% | $62.0M-4.6% | $61.0M-7.6% | $65.0M0.0% | $63.0M-3.1% |
| Income Tax | $113.0M+5.6% | $106.0M-17.2% | $100.0M+258.7% | -$24.0M-114.9% | $107.0M+4.9% | $128.0M+32.0% | -$63.0M-120.8% | $161.0M-54.6% |
| Net Income | $550.0M+51.1% | $512.0M+2.6% | $536.0M-21.1% | $632.0M-0.3% | $364.0M+62.5% | $499.0M+13.9% | $679.0M-6.2% | $634.0M-51.4% |
| EPS (Basic) | $1.24+57.0% | $1.14+6.5% | $1.17-17.0% | $1.39+6.1% | $0.79+75.6% | $1.07+25.9% | $1.41+1.4% | $1.31-47.0% |
| EPS (Diluted) | $1.21+55.1% | $1.12+6.7% | $1.14-17.4% | $1.35+4.7% | $0.78+73.3% | $1.05+23.5% | $1.38-0.7% | $1.29-47.6% |
| Diluted Shares (Avg) | 455M-3.2% | 457M-3.8% | N/A | 467M-5.5% | 470M-7.3% | 475M-8.5% | N/A | 494M-7.1% |
EBAY Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $17.9B-0.2% | $17.9B-5.6% | $17.4B-10.0% | $17.8B-10.7% | $18.0B-11.9% | $19.0B-11.5% | $19.4B-10.4% | $19.9B-6.0% |
| Current Assets | $6.0B+1.4% | $6.3B-8.9% | $5.1B-32.8% | $5.4B-23.6% | $5.9B-18.6% | $6.9B-34.0% | $7.6B-31.3% | $7.1B-31.5% |
| Cash & Equivalents | $2.3B+11.6% | $2.9B-4.5% | $1.9B-23.3% | $2.4B+52.5% | $2.1B+5.5% | $3.0B+42.3% | $2.4B+22.6% | $1.6B-37.7% |
| Short-Term Investments | $0-100.0% | $0-100.0% | $0 | $0 | $26.0M | $30.0M | $0 | $0 |
| Accounts Receivable | $155.0M+43.5% | $152.0M+40.7% | $135.0M+25.0% | $122.0M+3.4% | $108.0M+12.5% | $108.0M+21.3% | $108.0M+14.9% | $118.0M+59.5% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $4.5B+1.9% | $4.5B+2.4% | $4.5B+4.6% | $4.4B+1.3% | $4.4B+2.4% | $4.4B+2.9% | $4.3B0.0% | $4.3B+2.0% |
| Total Liabilities | $13.3B+0.4% | $13.5B-3.7% | $13.0B-8.8% | $13.1B-9.8% | $13.2B-11.0% | $14.0B-7.5% | $14.2B-6.7% | $14.5B-5.2% |
| Current Liabilities | $5.9B-0.8% | $5.1B-12.7% | $4.6B-24.0% | $5.8B+3.4% | $5.9B+2.4% | $5.9B+12.4% | $6.1B+34.9% | $5.6B+17.9% |
| Non-Current Liabilities | $7.4B+1.4% | $8.3B+2.7% | $8.3B+2.6% | $7.2B-18.2% | $7.3B-19.7% | $8.1B-18.0% | $8.1B-24.2% | $8.9B-15.7% |
| Long-Term Debt | $5.1B+2.8% | $6.0B+4.2% | $6.0B+4.2% | $5.0B-19.0% | $5.0B-19.0% | $5.8B-6.9% | $5.8B-17.5% | $6.2B-11.4% |
| Total Equity | $4.7B+0.9% | $4.4B-8.6% | $4.5B-13.1% | $4.7B-12.9% | $4.6B-16.1% | $4.8B-23.0% | $5.2B-19.4% | $5.4B-8.1% |
| Retained Earnings | $40.1B+4.0% | $39.7B+3.5% | $39.3B+3.5% | $39.0B+4.4% | $38.5B+4.4% | $38.3B+4.0% | $38.0B+3.9% | $37.4B+4.1% |
Not reported in any period shown, so not listed: Inventory.
EBAY Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $523.0M+253.8% | $969.0M+28.3% | $583.0M-13.9% | $961.0M+27.3% | -$340.0M-192.6% | $755.0M+22.8% | $677.0M+454.9% | $755.0M-12.4% |
| Depreciation & Amortization | $101.0M+27.8% | $93.0M+78.8% | $129.0M+3.2% | $161.0M+75.0% | $79.0M+2.6% | $52.0M-31.6% | $125.0M-8.1% | $92.0M-5.2% |
| Stock-Based Compensation | $182.0M+10.3% | $156.0M+14.7% | N/A | $147.0M+0.7% | $165.0M+7.1% | $136.0M-6.8% | N/A | $146.0M+1.4% |
| Capital Expenditures | $223.0M+120.8% | $72.0M-35.1% | $117.0M0.0% | $196.0M+79.8% | $101.0M+13.5% | $111.0M-22.4% | $117.0M-7.1% | $109.0M+28.2% |
| Free Cash Flow | $300.0M+168.0% | $897.0M+39.3% | $466.0M-16.8% | $765.0M+18.4% | -$441.0M-258.6% | $644.0M+36.4% | $560.0M+14100.0% | $646.0M-16.9% |
| Investing Cash Flow | -$584.0M-684.0% | $783.0M-41.7% | -$224.0M-117.7% | $200.0M+308.2% | $100.0M-84.7% | $1.3B+437.6% | $1.3B+550.7% | $49.0M-49.0% |
| Financing Cash Flow | -$464.0M+35.2% | -$561.0M+55.0% | -$823.0M+17.0% | -$874.0M+13.4% | -$716.0M+36.0% | -$1.2B-81.9% | -$992.0M-161.7% | -$1.0B-64.6% |
| Dividends Paid | $138.0M+3.0% | $139.0M+3.7% | $131.0M+2.3% | $132.0M+0.8% | $134.0M-0.7% | $134.0M-3.6% | $128.0M-0.8% | $131.0M-0.8% |
| Share Buybacks | $323.0M-48.2% | $486.0M-21.0% | $635.0M-30.3% | $626.0M-17.1% | $624.0M-39.4% | $615.0M+35.8% | $911.0M+221.9% | $755.0M+20.6% |
EBAY Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 73.5%+0.9pp | 74.0%+1.0pp | 69.6%-2.5pp | 70.9%-0.9pp | 72.5%+1.1pp | 73.0%+0.4pp | 72.2%-0.1pp | 71.8%0.0pp |
| Operating Margin | 21.6%+4.0pp | 19.8%-3.9pp | 20.6%-0.4pp | 20.4%-2.7pp | 17.5%-3.8pp | 23.6%-1.1pp | 21.1%+5.0pp | 23.1%+4.9pp |
| Net Margin | 17.5%+4.2pp | 16.6%-2.7pp | 18.1%-8.2pp | 22.4%-2.2pp | 13.3%+4.6pp | 19.3%+2.2pp | 26.3%-1.9pp | 24.6%-27.6pp |
| Return on Equity | 11.8%+3.9pp | 11.6%+1.3pp | 12.0%-1.2pp | 13.4%+1.7pp | 7.9%+3.8pp | 10.3%+3.4pp | 13.2%+1.8pp | 11.7%-10.4pp |
| Return on Assets | 3.1%+1.0pp | 2.9%+0.2pp | 3.1%-0.4pp | 3.5%+0.4pp | 2.0%+0.9pp | 2.6%+0.6pp | 3.5%+0.2pp | 3.2%-3.0pp |
| Current Ratio | 1.020.0x | 1.22+0.1x | 1.10-0.1x | 0.92-0.3x | 1.00-0.3x | 1.17-0.8x | 1.24-1.2x | 1.25-0.9x |
| Debt-to-Equity | 1.100.0x | 1.36+0.2x | 1.34+0.2x | 1.06-0.1x | 1.080.0x | 1.19+0.2x | 1.120.0x | 1.140.0x |
| Asset Turnover | 0.170.0x | 0.170.0x | 0.170.0x | 0.160.0x | 0.150.0x | 0.140.0x | 0.130.0x | 0.130.0x |
| FCF Margin | 9.6%+25.7pp | 29.0%+4.1pp | 15.7%-6.0pp | 27.1%+2.0pp | -16.2%-27.0pp | 24.9%+6.4pp | 21.7%+21.9pp | 25.1%-6.0pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| eBay Inc EBAY | FY2025 | $11.1B | $2.0B | 18.3% | $47.3B | 60/100 |
| JD.com, Inc. JD | FY2025 | $187.2B | $3.3B | 1.8% | $34.8B | 42/100 |
| Coupang, Inc. CPNG | FY2025 | $34.5B | $208.0M | 0.6% | $24.8B | 51/100 |
| Mercado Libre, Inc MELI | FY2025 | $28.9B | $2.0B | 6.9% | $86.0B | 75/100 |
| Sea Limited SE | FY2025 | $22.9B | $1.6B | 6.9% | $58.3B | 58/100 |
| Chewy, Inc. CHWY | FY2025 | $12.6B | $222.8M | 1.8% | $7.3B | 50/100 |
Where eBay Inc Ranks
Frequently Asked Questions
What is eBay Inc's annual revenue?
eBay Inc (EBAY) reported $11.1B in total revenue for fiscal year 2025. This represents a 7.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is eBay Inc's revenue growing?
eBay Inc (EBAY) revenue grew by 7.9% year-over-year, from $10.3B to $11.1B in fiscal year 2025.
Is eBay Inc profitable?
Yes, eBay Inc (EBAY) reported a net income of $2.0B in fiscal year 2025, with a net profit margin of 18.3%.
What is eBay Inc's EBITDA?
eBay Inc (EBAY) had EBITDA of $2.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does eBay Inc have?
As of fiscal year 2025, eBay Inc (EBAY) had $1.9B in cash and equivalents against $6.0B in long-term debt.
What is eBay Inc's gross margin?
eBay Inc (EBAY) had a gross margin of 71.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is eBay Inc's operating margin?
eBay Inc (EBAY) had an operating margin of 20.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is eBay Inc's net profit margin?
eBay Inc (EBAY) had a net profit margin of 18.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is eBay Inc's return on equity (ROE)?
eBay Inc (EBAY) has a return on equity of 45.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is eBay Inc's free cash flow?
eBay Inc (EBAY) generated $1.4B in free cash flow during fiscal year 2025. This represents a -26.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is eBay Inc's operating cash flow?
eBay Inc (EBAY) generated $2.0B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are eBay Inc's total assets?
eBay Inc (EBAY) had $17.4B in total assets as of fiscal year 2025, including both current and long-term assets.
What are eBay Inc's capital expenditures?
eBay Inc (EBAY) invested $525.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does eBay Inc spend on research and development?
eBay Inc (EBAY) invested $1.6B in research and development during fiscal year 2025.
What is eBay Inc's current ratio?
eBay Inc (EBAY) had a current ratio of 1.10 as of fiscal year 2025, which is considered adequate.
What is eBay Inc's debt-to-equity ratio?
eBay Inc (EBAY) had a debt-to-equity ratio of 1.34 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is eBay Inc's return on assets (ROA)?
eBay Inc (EBAY) had a return on assets of 11.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is eBay Inc's P/E ratio?
eBay Inc (EBAY) trades at 21.2x earnings, its market capitalization divided by net income of $2.2B net income, trailing 12 months to June 30, 2026. The market capitalization is $47.3B as of Oct 3, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is eBay Inc's price-to-sales ratio?
eBay Inc (EBAY) trades at 3.9x sales, its market capitalization divided by revenue of $12.0B revenue, trailing 12 months to June 30, 2026. The market capitalization is $47.3B as of Oct 3, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is eBay Inc's Altman Z-Score?
eBay Inc (EBAY) has an Altman Z-Score of 6.45, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is eBay Inc's Piotroski F-Score?
eBay Inc (EBAY) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are eBay Inc's earnings high quality?
eBay Inc (EBAY) has an earnings quality ratio of 0.96x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can eBay Inc cover its interest payments?
eBay Inc (EBAY) has an interest coverage ratio of 9.26x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is eBay Inc?
eBay Inc (EBAY) scores 60 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.