eBay Executes On Internet's Promise - Page 2

pricey. With a current market capitalization of $13.2 billion, eBay is valued at 30.7x trailing 12 months' revenue of $431 million and 19.9x projected 2001 revenues of $665 million. On an earnings basis, those figures are 232x TTM net income of $57 million and 120x projected 2001 earnings.

Recent (painful) experience tells us that eBay can't sustain its lofty valuation. In fact, just two weeks ago, shares were at a 52-week low of $26.75, which would have been a good time to jump in. While I'd wait for a better entry point than the current share price, make no mistake: eBay is one of the big winners in the Internet economy.