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EBay Inc (NASDAQ: EBAY), SunPower Corporation (NASDAQ: SPWR), Regeneron Pharmaceuticals Inc (NASDAQ: REGN) and Tupperware Brands Corporation (NYSE: TUP) are four stocks considered technically undervalued this month.

Investors may seek out undervalued stocks to invest in for the long term, hoping the market eventually realizes the stock is trading lower than its actual value and makes an upward correction.

How A Stock Is Deemed Undervalued: A stock is considered undervalued based on its price-to-earnings ratio (P/E).

A stock's P/E is found by dividing the stock’s current share price by its earnings per share (EPS) over the past 12 months.

A high P/E indicates the stock is trading above its value and could therefore be overvalued, while a low P/E means it is trading below its value and could therefore be overvalued.

As an example, if a stock is trading at $40 and has an EPS of $4, it has a P/E ratio of 10, meaning that for every share investors purchase, they claim $10 in earnings. This is considered a low P/E and could indicate the stock is undervalued.

Conversely, if a stock is trading at $40 per share and has an EPS of $1, it has a P/E ratio of 40 meaning that for every share investors purchase they claim only $1 in earnings. This is considered a high P/E and could indicate the stock is overvalued.

Four Stocks That May Be Undervalued: EBay, a San Jose-based multinational e-commerce company, has a 12-month EPS of $7.89 ended Friday's trading at $62.47, giving it a P/E of 7.92. This may indicate it is undervalued.

When eBay reported fourth-quarter earnings on Feb. 3, its revenue was up 28% to $2.9 billion, showing it may be going through a period of high growth.

SunPower, a San Jose-based solar energy company, has a 12-month EPS of $2.48 and ended Friday's trading at $29.71, giving it a P/E ratio of 11.99. This may indicate it is undervalued.

When SunPower reported fourth-quarter earnings on Feb. 17, the company said it had added 13,000 new customers. With the push for renewable energy, this may continue to grow, bringing the company increasing revenue.

Regeneron, the Westchester County-based biotechnology company, has a 12-month EPS of $30.52 and ended Friday's trading at $475.17, giving it a P/E ratio of 15.57. This may indicate it is undervalued.

When Regeneron reported its fourth-quarter results on Feb. 5 it had increased revenues by 30% compared to fourth-quarter 2019, showing sustained growth.

Tupperware, an Orlando-based multi-level marketing company with an extensive home product line, has a 12-month EPS of $2.14 and ended Friday's trading at $27.02, giving it a P/E ratio of 12.63. This may indicate it is undervalued.

When Tupperware released its fourth-quarter results on March 10, it said its global sales were up 17%, 20% in local currency, compared to the year prior.