Stock Updates

Is this Large Market Cap Stock target price reasonable for Discover Financial Services (NYSE:DFS)?

The company in question is, Discover Financial Services (NYSE:DFS) currently with a stock price of 58.71 (-1.44% today). The market cap for Discover Financial Services is 24445.15, and is in the sector Financial, and Credit Services industry. The target price for Discover Financial Services is 64.59. Currently Discover Financial Services is trading with a P/E of 11.18, and a forward P/E of 9.8. Average volume for Discover Financial Services is 2811.16 and so far today it is 331327.

Performance in the last year for Discover Financial Services has been 15.68%. For EPS growth, Discover Financial Services has seen a growth of 4.60%, and is looking to grow in the next year to 6.35%. More long term stats show that EPS growth has been 4.80% over the last five years and could be 8.23% for the next five years. Discover Financial Services has seen sales growth quarter over quarter at 7.30%, with EPS growth quarter over quarter at 10.50%. The 20-day simple moving average is 2.66%, with the 200-day simple moving average coming to 11.12%.

Since the IPO date for Discover Financial Services on the 6/14/2007, Discover Financial Services has seen performance year to date to be 12.94%. With Discover Financial Services trading at 58.71, the dividend yield is 2.01%, and the EPS is 5.33.

So could Discover Financial Services, be undervalued? Well as said before P/E is 11.18. The PEG is 1.36, P/S is 2.97 and the P/B is at 2.25. The P/cash is 2.1, with P/free cash flow at 6.36.

Discover Financial Services ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 2.28, and total debt/equity at 2.28.

In terms of margins, Discover Financial Services has a gross margin of *TBA, an operating margin of 63.90% and a profit margin of 27.30%.Payout ratio for Discover Financial Services is 21.40%. Return on assets come to 2.60% with return on investment coming to 10.90%.

Insider ownership for Discover Financial Services, is at 1.00% and institutional ownership comes to 88.80%. Outstanding shares are at 410.36. While shares float is 399.9. The float short is currently 1.25%, and short ratio is 1.77.

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.

About the author

Peter Clarke

Leave a Comment