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Is this Large Market Cap Stock target price reasonable for DaVita Inc. (NYSE:DVA)?

The company in question is, DaVita Inc. (NYSE:DVA) currently with a stock price of 62.26 (-0.94% today). The market cap for DaVita Inc. is 12910.23, and is in the sector Healthcare, and Specialized Health Services industry. The target price for DaVita Inc. is 78.2. Currently DaVita Inc. is trading with a P/E of 36.77, and a forward P/E of 15.17. Average volume for DaVita Inc. is 1799.88 and so far today it is 1438900.

Performance in the last year for DaVita Inc. has been -18.61%. For EPS growth, DaVita Inc. has seen a growth of -62.60%, and is looking to grow in the next year to 9.18%. More long term stats show that EPS growth has been -8.60% over the last five years and could be 13.50% for the next five years. DaVita Inc. has seen sales growth quarter over quarter at 8.20%, with EPS growth quarter over quarter at -67.20%. The 20-day simple moving average is -5.23%, with the 200-day simple moving average coming to -12.10%.

Since the IPO date for DaVita Inc. on the 10/31/1995, DaVita Inc. has seen performance year to date to be -10.69%. With DaVita Inc. trading at 62.26, the dividend yield is *TBA, and the EPS is 1.69.

So could DaVita Inc., be undervalued? Well as said before P/E is 36.77. The PEG is 2.72, P/S is 0.9 and the P/B is at 2.68. The P/cash is 7.7, with P/free cash flow at 10.04.

DaVita Inc. ability to deal with debt shows that the current ratio is 1.7, and the quick ratio is 1.6. This is with long term debt/equity at 1.89, and total debt/equity at 1.92.

In terms of margins, DaVita Inc. has a gross margin of 28.50%, an operating margin of 10.10% and a profit margin of 2.50%.Payout ratio for DaVita Inc. is 0.00%. Return on assets come to 1.90% with return on investment coming to 6.20%.

Insider ownership for DaVita Inc., is at 0.10% and institutional ownership comes to 86.20%. Outstanding shares are at 207.36. While shares float is 205.73. The float short is currently 2.75%, and short ratio is 3.14.

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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Stephen Butters

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