Opinion on  eBay Inc (EBAY)     Sector: Services  >  Industry: Retail (Specialty)
Positive Divergence Yields Entry Point...

EBAY stock price has made a lower price low but has made a higher low in terms of momentum.  This is an underappreciated growth stock.  Goldman Sachs thinks the 3-year growth rate 2008-2011 for ebay is +16%.  While this is not hypergrowth, the growth is still significant for a large cap stock.  A 1.5x PEG yields a P/E multiple near 24x.  Given eBays excellent cash generation relative to earnings per share, ebays earnings are worth significantly more than the S&P 500 average --- assuming the growth rate holds up.   I believe the stock is worth $35-40.