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Is this Large Market Cap Stock target price reasonable for KLA-Tencor Corporation (NASDAQ:KLAC)?

The company in question is, KLA-Tencor Corporation (NASDAQ:KLAC) currently with a stock price of 71.97 (0.88% today). The market cap for KLA-Tencor Corporation is 11206.66, and is in the sector Technology, and Semiconductor Equipment & Materials industry. The target price for KLA-Tencor Corporation is 74.79. Currently KLA-Tencor Corporation is trading with a P/E of 15.99, and a forward P/E of 12.95. Average volume for KLA-Tencor Corporation is 1857.93 and so far today it is 2832300.

Performance in the last year for KLA-Tencor Corporation has been 40.99%. For EPS growth, KLA-Tencor Corporation has seen a growth of 100.90%, and is looking to grow in the next year to 12.12%. More long term stats show that EPS growth has been -0.70% over the last five years and could be 21.20% for the next five years. KLA-Tencor Corporation has seen sales growth quarter over quarter at 21.50%, with EPS growth quarter over quarter at 103.10%. The 20-day simple moving average is 2.26%, with the 200-day simple moving average coming to 3.26%.

Since the IPO date for KLA-Tencor Corporation on the 3/26/1990, KLA-Tencor Corporation has seen performance year to date to be 6.21%. With KLA-Tencor Corporation trading at 71.97, the dividend yield is 2.89%, and the EPS is 4.5.

So could KLA-Tencor Corporation, be undervalued? Well as said before P/E is 15.99. The PEG is 0.75, P/S is 3.75 and the P/B is at 16.25. The P/cash is 4.5, with P/free cash flow at 29.36.

KLA-Tencor Corporation ability to deal with debt shows that the current ratio is 3.9, and the quick ratio is 3.2. This is with long term debt/equity at 4.44, and total debt/equity at 4.44.

In terms of margins, KLA-Tencor Corporation has a gross margin of 61.10%, an operating margin of 32.20% and a profit margin of 23.60%.Payout ratio for KLA-Tencor Corporation is 46.00%. Return on assets come to 14.90% with return on investment coming to 21.50%.

Insider ownership for KLA-Tencor Corporation, is at 0.30% and institutional ownership comes to 87.40%. Outstanding shares are at 155.71. While shares float is 155.55. The float short is currently 1.22%, and short ratio is 1.02.

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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