Morningstar: eBay is 41% undervalued, Cisco 35%

March 11th, 2008 | Category: Market Matters

A Morningstar advertisement asking “Is The Market Cheap Yet? We Think It Is” got my attention in a recent issue of Barron’s. Promoting its fairness Research service, Morningstar discusses the NASDAQ sell-off that year, stating that in July of 2007 the market was 6% overvalued, but now it is 15% undervalued.

The ad goes on to state that eBay (NASDAQ: EBAY) is trading at a 41% reduction to Morningstar’s estimate of value and that Cisco Systems (NASDAQ:

CSCO) is trading at a 35% reduction. At the moment, eBay was trading at $28.81, but it closed at $25.72 yesterday making the stock 52.7% undervalued by their degree. Cisco was next $24.94 and final night closed at $23.99, so it is now 38.8% below fair value.

Continue reading Morningstar: eBay is 41% undervalued, Cisco 35%

Original post by Sheldon Liber

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