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Is this Large Market Cap Stock target price reasonable for Baidu, Inc. (NASDAQ:BIDU)?

The company in question is, Baidu, Inc. (NASDAQ:BIDU) currently with a stock price of 175.51 (0.52% today). The market cap for Baidu, Inc. is 60519.36, and is in the sector Technology, and Internet Information Providers industry. The target price for Baidu, Inc. is 188.11. Currently Baidu, Inc. is trading with a P/E of 13, and a forward P/E of 28.2. Average volume for Baidu, Inc. is 2598.24 and so far today it is 1797700.

Performance in the last year for Baidu, Inc. has been 16.82%. For EPS growth, Baidu, Inc. has seen a growth of 154.80%, and is looking to grow in the next year to 47.01%. More long term stats show that EPS growth has been 56.60% over the last five years and could be -1.78% for the next five years. Baidu, Inc. has seen sales growth quarter over quarter at 10.20%, with EPS growth quarter over quarter at -33.10%. The 20-day simple moving average is -1.95%, with the 200-day simple moving average coming to 1.16%.

Since the IPO date for Baidu, Inc. on the 8/5/2005, Baidu, Inc. has seen performance year to date to be -7.16%. With Baidu, Inc. trading at 175.51, the dividend yield is *TBA, and the EPS is 13.5.

So could Baidu, Inc., be undervalued? Well as said before P/E is 13. The PEG is *TBA, P/S is 5.72 and the P/B is at 4.82. The P/cash is 5.37, with P/free cash flow at *TBA.

Baidu, Inc. ability to deal with debt shows that the current ratio is 3.1, and the quick ratio is 3.1. This is with long term debt/equity at 0.45, and total debt/equity at 0.46.

In terms of margins, Baidu, Inc. has a gross margin of 55.10%, an operating margin of 15.60% and a profit margin of 44.40%.Payout ratio for Baidu, Inc. is 0.00%. Return on assets come to 21.80% with return on investment coming to 5.40%.

Insider ownership for Baidu, Inc., is at 15.60% and institutional ownership comes to 84.50%. Outstanding shares are at 344.82. While shares float is 252.85. The float short is currently 1.90%, and short ratio is 1.85.

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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