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Is this Large Market Cap Stock target price reasonable for Fitbit Inc. (NYSE:FIT)?

The company in question is, Fitbit Inc. (NYSE:FIT) currently with a stock price of 13.12 (-1.65% today). The market cap for Fitbit Inc. is 3083.94, and is in the sector Technology, and Scientific & Technical Instruments industry. The target price for Fitbit Inc. is 21.25. Currently Fitbit Inc. is trading with a P/E of 27, and a forward P/E of 9.43. Average volume for Fitbit Inc. is 8698.21 and so far today it is 4614134.

Performance in the last year for Fitbit Inc. has been -62.53%. For EPS growth, Fitbit Inc. has seen a growth of 297.90%, and is looking to grow in the next year to 20.12%. More long term stats show that EPS growth has been *TBA over the last five years and could be 20.36% for the next five years. Fitbit Inc. has seen sales growth quarter over quarter at -20.40%, with EPS growth quarter over quarter at -75.70%. The 20-day simple moving average is -13.17%, with the 200-day simple moving average coming to -13.55%.

Since the IPO date for Fitbit Inc. on the 6/18/2015, Fitbit Inc. has seen performance year to date to be -54.92%. With Fitbit Inc. trading at 13.12, the dividend yield is *TBA, and the EPS is 0.49.

So could Fitbit Inc., be undervalued? Well as said before P/E is 27. The PEG is 1.33, P/S is 1.39 and the P/B is at 2.74. The P/cash is 4.06, with P/free cash flow at 19.57.

Fitbit Inc. ability to deal with debt shows that the current ratio is 2.7, and the quick ratio is 2.4. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Fitbit Inc. has a gross margin of 46.20%, an operating margin of 9.30% and a profit margin of 5.40%.Payout ratio for Fitbit Inc. is 0.00%. Return on assets come to 8.00% with return on investment coming to 24.00%.

Insider ownership for Fitbit Inc., is at 0.10% and institutional ownership comes to 70.10%. Outstanding shares are at 231.18. While shares float is 93.11. The float short is currently 56.18%, and short ratio is 6.01.

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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Peter Clarke

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