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Is this Large Market Cap Stock target price reasonable for eBay Inc. (NASDAQ:EBAY)?

The company in question is, eBay Inc. (NASDAQ:EBAY) currently with a stock price of 31.1 (-0.92% today). The market cap for eBay Inc. is 35131.69, and is in the sector Services, and Specialty Retail, Other industry. The target price for eBay Inc. is 31. Currently eBay Inc. is trading with a P/E of 18.76, and a forward P/E of 15.06. Average volume for eBay Inc. is 10884.08 and so far today it is 4188708.

Performance in the last year for eBay Inc. has been 11.47%. For EPS growth, eBay Inc. has seen a growth of 330.80%, and is looking to grow in the next year to 10.61%. More long term stats show that EPS growth has been 3.30% over the last five years and could be 5.74% for the next five years. eBay Inc. has seen sales growth quarter over quarter at -79.10%, with EPS growth quarter over quarter at -76.60%. The 20-day simple moving average is 19.75%, with the 200-day simple moving average coming to 20.84%.

Since the IPO date for eBay Inc. on the 9/24/1998, eBay Inc. has seen performance year to date to be 14.23%. With eBay Inc. trading at 31.1, the dividend yield is *TBA, and the EPS is 1.67.

So could eBay Inc., be undervalued? Well as said before P/E is 18.76. The PEG is 3.27, P/S is 4 and the P/B is at 5.57. The P/cash is 4.36, with P/free cash flow at 40.52.

eBay Inc. ability to deal with debt shows that the current ratio is 4.5, and the quick ratio is 4.5. This is with long term debt/equity at 1.4, and total debt/equity at 0.

In terms of margins, eBay Inc. has a gross margin of 78.40%, an operating margin of 27.10% and a profit margin of 22.00%.Payout ratio for eBay Inc. is 0.00%. Return on assets come to 10.20% with return on investment coming to 13.00%.

Insider ownership for eBay Inc., is at 7.40% and institutional ownership comes to 85.50%. Outstanding shares are at 1119.2. While shares float is 1043.98. The float short is currently 1.55%, and short ratio is 1.48.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Stephen Butters

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