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Is this Large Market Cap Stock target price reasonable for Activision Blizzard, Inc. (NASDAQ:ATVI)?

The company in question is, Activision Blizzard, Inc. (NASDAQ:ATVI) currently with a stock price of 44.12 (-0.68% today). The market cap for Activision Blizzard, Inc. is 32838.52, and is in the sector Technology, and Multimedia & Graphics Software industry. The target price for Activision Blizzard, Inc. is 46.5. Currently Activision Blizzard, Inc. is trading with a P/E of 44.3, and a forward P/E of 20.38. Average volume for Activision Blizzard, Inc. is 9437.72 and so far today it is 8135700.

Performance in the last year for Activision Blizzard, Inc. has been 43.02%. For EPS growth, Activision Blizzard, Inc. has seen a growth of 5.90%, and is looking to grow in the next year to 9.68%. More long term stats show that EPS growth has been 28.90% over the last five years and could be 23.44% for the next five years. Activision Blizzard, Inc. has seen sales growth quarter over quarter at 50.40%, with EPS growth quarter over quarter at -41.20%. The 20-day simple moving average is 6.18%, with the 200-day simple moving average coming to 19.56%.

Since the IPO date for Activision Blizzard, Inc. on the 10/25/1993, Activision Blizzard, Inc. has seen performance year to date to be 14.90%. With Activision Blizzard, Inc. trading at 44.12, the dividend yield is 0.59%, and the EPS is 1.

So could Activision Blizzard, Inc., be undervalued? Well as said before P/E is 44.3. The PEG is 1.89, P/S is 6.12 and the P/B is at 3.81. The P/cash is *TBA, with P/free cash flow at 21.85.

Activision Blizzard, Inc. ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1.5. This is with long term debt/equity at 0.58, and total debt/equity at 0.59.

In terms of margins, Activision Blizzard, Inc. has a gross margin of 63.40%, an operating margin of 21.20% and a profit margin of 13.80%.Payout ratio for Activision Blizzard, Inc. is 25.70%. Return on assets come to 4.70% with return on investment coming to 9.00%.

Insider ownership for Activision Blizzard, Inc., is at 4.50% and institutional ownership comes to 86.10%. Outstanding shares are at 744.3. While shares float is 682.64. The float short is currently 2.74%, and short ratio is 1.98.

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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Mark Hines

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