eBay P/E Hits New Low

Even though EBAY's (EBAY) share price is still well above the low 20's it reached in the summer of 2006, the company's P/E ratio has continued to slide as earnings have continued to grow. EBAY is now trading at 17.5x TTM earnings, 14.7x 2008E earnings, and a lowly 12.2x 2009E earnings. This ranks EBAY as one of the cheapest Nasdaq stocks based on earnings alone.

 

Comments

[redbaron:]

And with the latest changes from management, I look for the PE to decline further. These changes are decresaing revenues and listings, in spite of managements efforts to inflate the listing numbers with 'non-user' listings from outside sources. Paypal is still a good revenue producer, but the auction side is toast. The stock is essentially a consumer discretionary stock, and users, both buyers and sellers, are going elsewhere, using their discretion. I am still short the stock, just to be clear, and I look for the stock to test the old lows before year end, perhaps yet this summer.

2008 Jun 24 10:30 AM

[networkeffect:]

eBay is undervalued stock at this price and a good buy. The changes company made were good for buyers. As long as buyers stay with eBay, more likely they will with the changes, sellers will come over. However they will have to follow strict rules recently implemented.
Long run eBay will benefit with fraud going down due to strict rules, less cost for fraud protection for Paypal as fraud will decrease. time will tell.

Stock is a good buy at these prices

2008 Jun 24 04:29 PM

[ebaywonderland:]

Fraud going down? Based on what rules? Buyers are not staying, in fact announced at Ebay Live in Chicago was "millions of coupons to our best buyers now and again prior to the holidays". The problem is that a lot of people getting the coupons make a purchase and get error codes with the coupons, cannot be used. It's hit and miss.

Look at the active user number slide in the last 9 quarters, buyers and sellers are not flocking to ebay. They lost buyers year over year due to fraud and the fraud still exists.

No policy changes to control fraud from either side of the transaction.

2008 Jun 24 06:32 PM

[Et tu, Brute!:]

Fraud going down?! More delusional slop! It's become more rampant. Sift through feedback in ANY given category and the negative cremation to sellers is unbelievable. Drivel is spoken regarding protection and fraud provention and NOTHING but seller extermination moves forward. It's a bloodbath over their. What this company is thinking I cannot even imagine but it is absolutely and utterly unscrupulous! In reality it has completely turned seller against buyer and buyer against seller.

EBay will not last. It will not last.

2008 Jun 24 11:46 PM

[LBC:]

The only group of people in the world more full of hatred and venom than eBay sellers are Hillary supporters. You should all go for joint anger therapy.

2008 Jun 25 11:36 AM

[ebaylp:]

cheers LBC!!!

2008 Jun 26 03:10 AM

[kenthesailor:]

Anyone seen the new commercials that Direct TV has been putting out about Cable Company executives sitting around in a boardroom thinking of outlandish lies to pawn off on the public?

It kinda reminds me of the scenes that must be going on with eBay right now. There was really very little fraud happening on eBay between buyers and sellers. The real fraud is being perpetrated by eBay.

2008 Jun 26 02:27 PM

[justpurrfect:]

eBay have shown little or no concern for really basic frauds - look at the listings for any big designer name. They claim to vet such listings but what sort of vetting allows an almost new, apparently desirable, £500 item through when the bidders let it end at £26? Doesn't that tell you it is fake?

2008 Jun 28 05:59 AM