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Is this Large Market Cap Stock target price reasonable for Select Income REIT (NASDAQ:SIR)?

The company in question is, Select Income REIT (NASDAQ:SIR) currently with a stock price of 25.89 (0.15% today). The market cap for Select Income REIT is 2300.65, and is in the sector Financial, and REIT РOffice industry. The target price for Select Income REIT is 29.3. Currently Select Income REIT is trading with a P/E of 21.94, and a forward P/E of 18.14. Average volume for Select Income REIT is 399.45 and so far today it is 50811.

Performance in the last year for Select Income REIT has been 40.79%. For EPS growth, Select Income REIT has seen a growth of -54.40%, and is looking to grow in the next year to 1.06%. More long term stats show that EPS growth has been -18.09% over the last five years and could be 6.50% for the next five years. Select Income REIT has seen sales growth quarter over quarter at 7.20%, with EPS growth quarter over quarter at 4.70%. The 20-day simple moving average is -3.29%, with the 200-day simple moving average coming to 9.18%.

Since the IPO date for Select Income REIT on the 03/07/2012, Select Income REIT has seen performance year to date to be 36.91%. With Select Income REIT trading at 25.89, the dividend yield is 7.89%, and the EPS is 1.18.

So could Select Income REIT, be undervalued? Well as said before P/E is 21.94. The PEG is 3.38, P/S is 5.01 and the P/B is at 1.1. The P/cash is 213.02, with P/free cash flow at *TBA.

Select Income REIT 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 1.12, and total debt/equity at 1.12.

In terms of margins, Select Income REIT has a gross margin of 80.50%, an operating margin of 45.50% and a profit margin of 22.90%.Payout ratio for Select Income REIT is 169.80%. Return on assets come to 2.20% with return on investment coming to 3.80%.

Insider ownership for Select Income REIT, is at 0.20% and institutional ownership comes to 48.50%. Outstanding shares are at 89. While shares float is 62.67. The float short is currently 2.14%, and short ratio is 3.36.

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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