BusinessWeek Logo
eBay

eBay

FAIRLY VALUED
Earnings report date: July 16
Expected EPS: 41
Price to projected earnings ratio: 16.09
PEG: 0.93
Stock Price as of July 11: $28.01

eBay's PEG of under 1 might make it look undervalued. But the company faces considerable challenges including: the prospect that consumers will curtail online spending; legal setbacks that threaten to hamper eBay's ability to offer higher-priced, name brand goods from resellers; and a growth slowdown in its core shopping business. Yet eBay's shares (EBAY) shouldn’t fall much more. The company is buoyed in part by the performance of its PayPal online payment service.