Insufficient Growth At eBay Inc. (NASDAQ:EBAY) Hampers Share Price
With a price-to-earnings (or “P/E”) ratio of 14.9x eBay Inc. (NASDAQ:EBAY) may be sending bullish signals at the moment, given that almost half of all companies in the United States have P/E ratios greater than 20x and even P/E’s higher than 36x are not unusual. However, the P/E might be low for a reason and it requires further investigation to determine if it’s justified.
eBay could be doing better as its earnings have been going backwards lately while most other companies have been seeing positive earnings growth. The P/E is probably low because investors think this poor earnings performance isn’t going to get any better. If you still like the company, you’d be hoping this isn’t the case so that you could potentially pick up…
