eBay's biggest bargain: The company's shares

Back in 2000, shares of eBay, best known for its online auctions, hit a price-to-earnings ratio of 2,700, and were the darlings of growth investors everywhere. These days the company's shares have a new valuation about 1/300th of its old peak - its P/E is a lowly 9 based on next year's earnings - and a decidedly different fanbase. Grantham Mayo's Jeremy Grantham, Mason Hawkins of the Longleaf Partners Fund and Ariel Capital's John Rogers all have long-term track records for picking stocks that outperform the market, and all three have recently been buying eBay shares for their clients' portfolios. "This is a classic growth stock at a value price," says Ariel's chief investment officer Charlie Bobrinskoy.

Read More...

[Source: Financial news of the day - CNNMoney.com]