Stock Tips By Derek
|Posted on August 27, 2013 at 9:50 PM|
Looking at the recent earning from EBAY, there was a lot to like. The three things that made me a buyer are the stock's PE, the growth of EBAY's core business units, and the recent price performance of the stock.
- PE Ratio: The stock is currently trading at a P/E of 25, significantly lower than it's main competitors. Compared to AMZN and FB which both have triple digit PE ratios, 25 seems like a bargain in the high growth tech sector. Even compared to GOOG, which is trading at a 26 PE, EBAY seems to be on the lower end of the PE spectrum within the tech industry.
- Business Unit Growth: Looking at the 10K, the two newer BUs are growing at a very attractive rate. Payments growing total payment volume at 24% and Enterprise growing merch sales at 21%. All this high growth while the huge core business of Marketplaces continues to grow in the low double digits.
I'm a buyer of EBAY in the low $50s
Categories: stock evaluation