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Is this Large Market Cap Stock target price reasonable for KLA-Tencor Corporation (NASDAQ:KLAC)?

The company in question is, KLA-Tencor Corporation (NASDAQ:KLAC) currently with a stock price of 76.8 (-0.25% today). The market cap for KLA-Tencor Corporation is 11986.57, and is in the sector Technology, and Semiconductor Equipment & Materials industry. The target price for KLA-Tencor Corporation is 72.33. Currently KLA-Tencor Corporation is trading with a P/E of 21.26, and a forward P/E of 15.8. Average volume for KLA-Tencor Corporation is 994 and so far today it is 157964.

Performance in the last year for KLA-Tencor Corporation has been 55.94%. For EPS growth, KLA-Tencor Corporation has seen a growth of -35.50%, and is looking to grow in the next year to 13.22%. More long term stats show that EPS growth has been 12.80% over the last five years and could be 21.20% for the next five years. KLA-Tencor Corporation has seen sales growth quarter over quarter at -3.50%, with EPS growth quarter over quarter at 40.80%. The 20-day simple moving average is 5.20%, with the 200-day simple moving average coming to 12.80%.

Since the IPO date for KLA-Tencor Corporation on the 3/26/1990, KLA-Tencor Corporation has seen performance year to date to be 12.77%. With KLA-Tencor Corporation trading at 76.8, the dividend yield is 2.70%, and the EPS is 3.62.

So could KLA-Tencor Corporation, be undervalued? Well as said before P/E is 21.26. The PEG is 1, P/S is 4.25 and the P/B is at 25.16. The P/cash is 5.35, with P/free cash flow at 34.76.

KLA-Tencor Corporation ability to deal with debt shows that the current ratio is 3.9, and the quick ratio is 3.2. This is with long term debt/equity at 6.5, and total debt/equity at 6.5.

In terms of margins, KLA-Tencor Corporation has a gross margin of 59.40%, an operating margin of 28.80% and a profit margin of 20.40%.Payout ratio for KLA-Tencor Corporation is 56.60%. Return on assets come to 12.30% with return on investment coming to 12.80%.

Insider ownership for KLA-Tencor Corporation, is at 0.10% and institutional ownership comes to 88.30%. Outstanding shares are at 155.69. While shares float is 155.34. The float short is currently 1.21%, and short ratio is 1.9.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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