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Is this Large Market Cap Stock target price reasonable for L Brands, Inc. (NYSE:LB)?

The company in question is, L Brands, Inc. (NYSE:LB) currently with a stock price of 74.01 (-0.81% today). The market cap for L Brands, Inc. is 21291.33, and is in the sector Services, and Apparel Stores industry. The target price for L Brands, Inc. is 72.08. Currently L Brands, Inc. is trading with a P/E of 19.16, and a forward P/E of 18.65. Average volume for L Brands, Inc. is 2894.77 and so far today it is 794610.

Performance in the last year for L Brands, Inc. has been -3.89%. For EPS growth, L Brands, Inc. has seen a growth of 20.70%, and is looking to grow in the next year to 7.55%. More long term stats show that EPS growth has been 11.80% over the last five years and could be 10.08% for the next five years. L Brands, Inc. has seen sales growth quarter over quarter at 4.10%, with EPS growth quarter over quarter at -38.00%. The 20-day simple moving average is 6.26%, with the 200-day simple moving average coming to -8.98%.

Since the IPO date for L Brands, Inc. on the 7/1/1985, L Brands, Inc. has seen performance year to date to be -18.91%. With L Brands, Inc. trading at 74.01, the dividend yield is 3.22%, and the EPS is 3.89.

So could L Brands, Inc., be undervalued? Well as said before P/E is 19.16. The PEG is 1.9, P/S is 1.74 and the P/B is at *TBA. The P/cash is *TBA, with P/free cash flow at *TBA.

L Brands, Inc. ability to deal with debt shows that the current ratio is 1.9, and the quick ratio is 1.1. This is with long term debt/equity at *TBA, and total debt/equity at *TBA.

In terms of margins, L Brands, Inc. has a gross margin of 42.40%, an operating margin of 17.50% and a profit margin of 9.40%.Payout ratio for L Brands, Inc. is 52.60%. Return on assets come to 15.00% with return on investment coming to 27.70%.

Insider ownership for L Brands, Inc., is at 0.20% and institutional ownership comes to 77.40%. Outstanding shares are at 285.33. While shares float is 242.01. The float short is currently 5.01%, and short ratio is 4.19.

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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Stephen Butters

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