Market Overview

P/E Ratio Insights for eBay

Share:

 

Right now, eBay Inc. (NASDAQ: EBAY) share price is at $53.01, after a 2.87% spike. Moreover, over the past month, the stock fell by 4.47%, but in the past year, went up by 31.57%. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is performing up to par in the current session.

Assuming that all other factors are held constant, this could present itself as an opportunity for shareholders trying to capitalize on the higher share price. The stock is currently under from its 52 week high by 13.18%.

The P/E ratio is used by long-term shareholders to assess the company’s market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E indicates that shareholders do not expect the stock to perform better in the future, and that the company is probably undervalued. It shows that shareholders are less than willing to pay a high share price, because they do not expect the company to exhibit growth, in terms of future earnings.

Most often, an industry will prevail in a particular phase of a business cycle, than other industries.

eBay Inc. has a better P/E ratio of 18.81 than the aggregate P/E ratio of 16.58 of the Internet Retail industry. Ideally, one might believe that eBay Inc. might perform better in the future than it’s industry group, but it’s probable that the stock is overvalued.

Price to earnings ratio is not always a great indicator of the company's performance. Depending on the earnings makeup of a company, investors may not be able to attain key insights from trailing earnings.

 

Related Articles (EBAY)

View Comments and Join the Discussion!

Posted-In: P/E Ratio InsightsEarnings News Intraday Update Markets

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com