At US$53.69, Is It Time To Put eBay Inc. (NASDAQ:EBAY) On Your Watch List?

Let's talk about the popular eBay Inc. (NASDAQ:EBAY). The company's shares saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$54.55 and falling to the lows of US$49.38. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether eBay's current trading price of US$53.69 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at eBay’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for eBay

What's The Opportunity In eBay?

Good news, investors! eBay is still a bargain right now. According to our valuation, the intrinsic value for the stock is $86.46, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because eBay’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from eBay?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for eBay, at least in the near future.

What This Means For You

Are you a shareholder? Although EBAY is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. We recommend you think about whether you want to increase your portfolio exposure to EBAY, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on EBAY for a while, but hesitant on making the leap, we recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you'd like to know more about eBay as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 4 warning signs for eBay you should be mindful of and 1 of them makes us a bit uncomfortable.

If you are no longer interested in eBay, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com