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Is this Large Market Cap Stock target price reasonable for SLM Corporation (NASDAQ:SLM)?

The company in question is, SLM Corporation (NASDAQ:SLM) currently with a stock price of 7.16 (1.20% today). The market cap for SLM Corporation is 3034.84, and is in the sector Financial, and Credit Services industry. The target price for SLM Corporation is 9.56. Currently SLM Corporation is trading with a P/E of 12.83, and a forward P/E of 10.52. Average volume for SLM Corporation is 2288.58 and so far today it is 1525789.

Performance in the last year for SLM Corporation has been 3.96%. For EPS growth, SLM Corporation has seen a growth of 40.50%, and is looking to grow in the next year to 29.17%. More long term stats show that EPS growth has been -11.30% over the last five years and could be 11.68% for the next five years. SLM Corporation has seen sales growth quarter over quarter at 28.60%, with EPS growth quarter over quarter at -39.50%. The 20-day simple moving average is -2.29%, with the 200-day simple moving average coming to 8.18%.

Since the IPO date for SLM Corporation on the 01/05/1988, SLM Corporation has seen performance year to date to be 8.59%. With SLM Corporation trading at 7.16, the dividend yield is *TBA, and the EPS is 0.55.

So could SLM Corporation, be undervalued? Well as said before P/E is 12.83. The PEG is 1.1, P/S is 3.24 and the P/B is at 1.86. The P/cash is 2.91, with P/free cash flow at *TBA.

SLM Corporation 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 0.64, and total debt/equity at 7.93.

In terms of margins, SLM Corporation has a gross margin of 84.00%, an operating margin of 30.60% and a profit margin of 25.50%.Payout ratio for SLM Corporation is 0.00%. Return on assets come to 1.60% with return on investment coming to 0.70%.

Insider ownership for SLM Corporation, is at 0.90% and institutional ownership comes to 94.10%. Outstanding shares are at 428.65. While shares float is 424.14. The float short is currently 3.83%, and short ratio is 7.1.

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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