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Is this Large Market Cap Stock target price reasonable for Virgin America Inc. (NASDAQ:VA)?

The company in question is, Virgin America Inc. (NASDAQ:VA) currently with a stock price of 52.35 (-1.75% today). The market cap for Virgin America Inc. is 2752.96, and is in the sector Services, and Regional Airlines industry. The target price for Virgin America Inc. is 53.71. Currently Virgin America Inc. is trading with a P/E of 7.46, and a forward P/E of 18.05. Average volume for Virgin America Inc. is 758.36 and so far today it is 813514.

Performance in the last year for Virgin America Inc. has been 59.98%. For EPS growth, Virgin America Inc. has seen a growth of 535.80%, and is looking to grow in the next year to -1.93%. More long term stats show that EPS growth has been *TBA over the last five years and could be -0.03% for the next five years. Virgin America Inc. has seen sales growth quarter over quarter at 6.20%, with EPS growth quarter over quarter at -42.50%. The 20-day simple moving average is -4.85%, with the 200-day simple moving average coming to 9.46%.

Since the IPO date for Virgin America Inc. on the 11/14/2014, Virgin America Inc. has seen performance year to date to be 47.99%. With Virgin America Inc. trading at 52.35, the dividend yield is *TBA, and the EPS is 7.14.

So could Virgin America Inc., be undervalued? Well as said before P/E is 7.46. The PEG is *TBA, P/S is 1.73 and the P/B is at 2.67. The P/cash is 4.58, with P/free cash flow at *TBA.

Virgin America Inc. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 1.3. This is with long term debt/equity at 0.5, and total debt/equity at 0.53.

In terms of margins, Virgin America Inc. has a gross margin of 66.60%, an operating margin of 12.30% and a profit margin of 20.00%.Payout ratio for Virgin America Inc. is 0.00%. Return on assets come to 19.50% with return on investment coming to 31.30%.

Insider ownership for Virgin America Inc., is at 0.70% and institutional ownership comes to 66.30%. Outstanding shares are at 51.66. While shares float is 43.54. The float short is currently 14.11%, and short ratio is 8.1.

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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Tony Dabbs

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