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Is Discovery Communications, Inc.(NASDAQ: DISCA), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Discovery Communications, Inc. (NASDAQ: DISCA) has been on the stock market since its IPO date on the 7/8/2005. Discovery Communications, Inc. is in the CATV Systems industry and Services sector. Average volume for Discovery Communications, Inc., is 3602.42, and so far today it has a volume of 2744214. Performance year to date since the 7/8/2005 is -5.96%.

To help you determine whether Discovery Communications, Inc. is undervalued the following values will help you decide. P/E is 15.48 and forward P/E is 11.7. PEG perhaps more useful shows that Discovery Communications, Inc. has a value for PEG of 1.14. P/S ratio is 1.57 and the P/B ratio is 1.93. The P/Cash and P/Free cash flow is 30.29 and 8.46 respectively.

At the current price Discovery Communications, Inc. is trading at, 24.93 (-0.64% today), Discovery Communications, Inc. has a dividend yield of *TBA, and this is covered by a payout ratio of 0.00%. Earnings per share (EPS) is 1.62, and this is looking to grow in the next year to 13.62% after growing -4.80% this past year. EPS growth quarter over quarter is 12.10%, and 1.60% for sales growth quarter over quarter.

The number of shares outstanding is 401.97, and the number of shares float is 383.39. The senior management bring insider ownership to 0.60%, and institutional ownership is at *TBA. The float short is 6.32%, with the short ratio at a value of 6.73. Management has seen a return on assets of 4.80%, and also a return on investment of 11.20%.

The ability for Discovery Communications, Inc., to deal with debt, means it current ratio is 1.9, and quick ratio is 1.9. Long term debt/equity is 1.48 and total debt/equity is 1.49. In terms of margins, Discovery Communications, Inc. has a gross margin of 63.10%, with its operating margin at 31.00%, and Discovery Communications, Inc. has a profit margin of 11.80%.

The 52 week high is -25.43%, with 5.37% being its 52 week low. The 20 day simple moving average is -3.99% and the 200 day simple moving average is -9.15%.

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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