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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 3333.6, and so far today it has a volume of 2476900. Performance year to date since the 7/8/2005 is 4.35%.

To help you determine whether Discovery Communications, Inc. is undervalued the following values will help you decide. P/E is 15.1 and forward P/E is 12.52. PEG perhaps more useful shows that Discovery Communications, Inc. has a value for PEG of 0.96. P/S ratio is 1.67 and the P/B ratio is 2.1. The P/Cash and P/Free cash flow is 58.39 and 9.15 respectively.

At the current price Discovery Communications, Inc. is trading at, 27.84 (0.54% 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 1.84, and this is looking to grow in the next year to 12.78% after growing -4.80% this past year. EPS growth quarter over quarter is 51.70%, and 3.30% for sales growth quarter over quarter.

The number of shares outstanding is 387.99, and the number of shares float is 373.62. The senior management bring insider ownership to 0.50%, and institutional ownership is at *TBA. The float short is 7.39%, with the short ratio at a value of 8.29. Management has seen a return on assets of 4.90%, and also a return on investment of 11.20%.

The ability for Discovery Communications, Inc., to deal with debt, means it current ratio is 1.8, and quick ratio is 1.8. Long term debt/equity is 1.46 and total debt/equity is 1.49. In terms of margins, Discovery Communications, Inc. has a gross margin of 62.80%, with its operating margin at 31.20%, and Discovery Communications, Inc. has a profit margin of 11.90%.

The 52 week high is -12.45%, with 17.67% being its 52 week low. The 20 day simple moving average is 7.63% and the 200 day simple moving average is 4.65%.

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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