EBay: The Stock Could Be Worth $35 a Share, Piper Says

A year from now, eBay (EBAY) shares could be worth as much as $35 a share, Piper Jaffray analyst Gene Munster asserts in a research note this morning.

Munster thinks the Street undervalues the company’s return to earnings growth in 2010–and says a sum-of-the parts approach reached a $35 valuation. Here’s how he gets there:

  • The core Marketplace business, he contends, is worth 10x 2011 estimated EBITDA, or $24 a share. The a group of e-commerce stocks trades at 12x 2010 and 10x 2011, he notes. While eBay’s Marketplace business has lower growth prospects than the group overall, he contends that factor is offset by the company’s franchise status and ~30 percent free cash flow profile.

Read the rest of this post on the original site

Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »