High Price on Ebay
EBAY Inc.is a global online auction platform.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'EBAY'" symbolprices="60" div_align="right"]
In June 2014, we identified a low valuation in EBAY at $49.09. Since then, the earnings forecasts have been reduced by about 10%.
In spite of the 10% weaker earnings forecasts, we managed to sell at 3% less than our initial $62.00 target.
Note that it can be insightful to compare the metrics in the table below on the date we initiate a trade and on the date that we sell.
HIGH VALUATION IN EBAY AT $USD 59.90 (EBAY-US, $59.87) HALF POSITION
TOTAL RETURN: 22.0%
PURPLE CHIPS TARGET: $60.00 POSITION SIZE: HALF (2.5%) P/E: 20.2X DIV: Nil MKT CAP: $72B Cash:$8B RETURN ON CAPITAL: 28.8% EARNINGS YIELD: 5.2% 5 YR EPS Growth rate*:12.5% P/E/G Ratio: 1.7X EPS: $2.97 2016 EST.: $3.40 2017 EST.: $3.73
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
