Why eBay Inc (EBAY) Is A Great Buy

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These discount retailers have also resorted to a major redesign by developing the ‘City Target’ format, which aims at tapping the urban markets, where real estate remains a constraint. These stores are designed to fit in urban locations, both in terms of size and store design aesthetic.

By integrating the digital mode into the shopping experience, these retailers can earn rewards in the form of increased shopper demand and greater shopper loyalty.

M-Commerce Growth Positive for eBay

Research firm comScore reports that the numbers of U.S. smartphone users accessing retail content are increasing steadily. Amazon led all destinations with the highest unique visitors, followed by eBay and Apple Inc. (NASDAQ:AAPL). Wal-Mart led all traditional brick-and-mortar retailers with the maximum number of smartphone visitors, followed by Target and  Best Buy.

The EPS is growing steadily for eBay, with a flat PE multiple around 28. But for Amazon, despite the EPS declining consistently, its PE multiple is rising. Amazon’s skyrocketing revenue per share is fueling its stock price along with the PE.

EBAY EPS Diluted TTM data by YCharts

Amazon has recorded a huge 255.1% growth in revenue per share, while for eBay it has just started rising with 80.75%. For retailer giant Wal-Mart, it’s standing at only 42.71%, for Target it’s at 40.81% and for Best Buy, the specialty retailer, it’s slightly better with 52.56%.

EBAY Revenue Per Share TTM data by YCharts

With eBay’s revenue showing signs of multiplying growth, I strongly feel that eBay’s stock is currently trading at the deep-value zone and will rise significantly over the medium-term. I would recommend buying the stock at the current price level.

The article Why This Online Retailer Is A Great Buy originally appeared on Fool.com and is written by Anindya Batabyal.

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