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Is this Large Market Cap Stock target price reasonable for Smith & Nephew plc (NYSE:SNN)?

The company in question is, Smith & Nephew plc (NYSE:SNN) currently with a stock price of 30.74 (0.39% today). The market cap for Smith & Nephew plc is 13740.78, and is in the sector Healthcare, and Medical Appliances & Equipment industry. The target price for Smith & Nephew plc is 41. Currently Smith & Nephew plc is trading with a P/E of 38.72, and a forward P/E of 16.05. Average volume for Smith & Nephew plc is 438.58 and so far today it is 1096800.

Performance in the last year for Smith & Nephew plc has been -11.57%. For EPS growth, Smith & Nephew plc has seen a growth of -18.20%, and is looking to grow in the next year to 15.71%. More long term stats show that EPS growth has been -7.80% over the last five years and could be 7.10% for the next five years. Smith & Nephew plc has seen sales growth quarter over quarter at 2.50%, with EPS growth quarter over quarter at -18.30%. The 20-day simple moving average is -5.81%, with the 200-day simple moving average coming to -6.68%.

Since the IPO date for Smith & Nephew plc on the 11/16/1999, Smith & Nephew plc has seen performance year to date to be -12.04%. With Smith & Nephew plc trading at 30.74, the dividend yield is 1.59%, and the EPS is 0.79.

So could Smith & Nephew plc, be undervalued? Well as said before P/E is 38.72. The PEG is 5.45, P/S is 2.93 and the P/B is at 3.49. The P/cash is 161.66, with P/free cash flow at *TBA.

Smith & Nephew plc ability to deal with debt shows that the current ratio is 1.9, and the quick ratio is 0.9. This is with long term debt/equity at 0.43, and total debt/equity at 0.45.

In terms of margins, Smith & Nephew plc has a gross margin of 74.20%, an operating margin of *TBA and a profit margin of *TBA.Payout ratio for Smith & Nephew plc is *TBA. Return on assets come to *TBA with return on investment coming to 8.80%.

Insider ownership for Smith & Nephew plc, is at 0.60% and institutional ownership comes to 5.90%. Outstanding shares are at 447. While shares float is 439.88. The float short is currently 0.35%, and short ratio is 3.46.

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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Mark Hines

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