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Is this Large Market Cap Stock target price reasonable for Spirit Airlines, Inc. (NASDAQ:SAVE)?

The company in question is, Spirit Airlines, Inc. (NASDAQ:SAVE) currently with a stock price of 43.35 (-0.53% today). The market cap for Spirit Airlines, Inc. is 3105.51, and is in the sector Services, and Major Airlines industry. The target price for Spirit Airlines, Inc. is 53.67. Currently Spirit Airlines, Inc. is trading with a P/E of 10.18, and a forward P/E of 10.92. Average volume for Spirit Airlines, Inc. is 1253.9 and so far today it is 506092.

Performance in the last year for Spirit Airlines, Inc. has been -13.12%. For EPS growth, Spirit Airlines, Inc. has seen a growth of 41.40%, and is looking to grow in the next year to 2.10%. More long term stats show that EPS growth has been 10.00% over the last five years and could be 4.39% for the next five years. Spirit Airlines, Inc. has seen sales growth quarter over quarter at 5.50%, with EPS growth quarter over quarter at -2.20%. The 20-day simple moving average is 7.36%, with the 200-day simple moving average coming to -0.31%.

Since the IPO date for Spirit Airlines, Inc. on the 5/26/2011, Spirit Airlines, Inc. has seen performance year to date to be 9.36%. With Spirit Airlines, Inc. trading at 43.35, the dividend yield is *TBA, and the EPS is 4.28.

So could Spirit Airlines, Inc., be undervalued? Well as said before P/E is 10.18. The PEG is 2.32, P/S is 1.4 and the P/B is at 2.37. The P/cash is 3.06, with P/free cash flow at 1826.77.

Spirit Airlines, Inc. ability to deal with debt shows that the current ratio is 1.9, and the quick ratio is 1.9. This is with long term debt/equity at 0.64, and total debt/equity at 0.7.

In terms of margins, Spirit Airlines, Inc. has a gross margin of 46.30%, an operating margin of 22.60% and a profit margin of 13.80%.Payout ratio for Spirit Airlines, Inc. is 0.00%. Return on assets come to 11.60% with return on investment coming to 17.30%.

Insider ownership for Spirit Airlines, Inc., is at 0.50% and institutional ownership comes to 99.80%. Outstanding shares are at 71.26. While shares float is 69.75. The float short is currently 5.76%, and short ratio is 3.2.

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

Mark Hines

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