Microsoft Corporation (MSFT) and eBay Inc (EBAY): Two Undervalued Investment Opportunities

Page 2 of 2

Based on a very conservative discounted cash flow valuation, investors can buy into this stock at about a 5% margin of safety at today’s prices, around $52 per share. Though the margin of safety is small, eBay Inc (NASDAQ:EBAY) is arguably a core stock that could ride the waves of e-commerce growth and mobile payment adoption for years to come. The fact that the stock even trades at a price that is possibly just slightly below fair value makes this core stock an attractive investment opportunity.

Is bargain-hunting a science?
We know it’s impossible to perfectly quantify any investment opportunity. But that doesn’t mean a worthwhile try at quantifying a bargain is time wasted. The combination of a conservative estimate of a business’ future and the requirement of a reasonable margin of safety could merit addition to your watchlist.

So if you’re looking for quantifiably discounted investment opportunities, now might be a good time to take a closer look at Microsoft Corporation (NASDAQ:MSFT) and eBay Inc (NASDAQ:EBAY).

The article 2 Undervalued Investment Opportunities originally appeared on Fool.com.

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends eBay and l owns shares of eBay and Microsoft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2