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Is this Large Market Cap Stock target price reasonable for ABB Ltd. (NYSE:ABB)?

The company in question is, ABB Ltd. (NYSE:ABB) currently with a stock price of 22.34 (0.40% today). The market cap for ABB Ltd. is 48990.5, and is in the sector Industrial Goods, and Diversified Machinery industry. The target price for ABB Ltd. is 21.9. Currently ABB Ltd. is trading with a P/E of 29.01, and a forward P/E of 18.8. Average volume for ABB Ltd. is 1577.85 and so far today it is 1110600.

Performance in the last year for ABB Ltd. has been 24.62%. For EPS growth, ABB Ltd. has seen a growth of -22.70%, and is looking to grow in the next year to 14.78%. More long term stats show that EPS growth has been -4.90% over the last five years and could be 5.70% for the next five years. ABB Ltd. has seen sales growth quarter over quarter at -5.30%, with EPS growth quarter over quarter at -28.30%. The 20-day simple moving average is 0.61%, with the 200-day simple moving average coming to 14.62%.

Since the IPO date for ABB Ltd. on the 4/6/2001, ABB Ltd. has seen performance year to date to be 31.16%. With ABB Ltd. trading at 22.34, the dividend yield is 3.36%, and the EPS is 0.77.

So could ABB Ltd., be undervalued? Well as said before P/E is 29.01. The PEG is 5.09, P/S is 1.43 and the P/B is at 3.77. The P/cash is 7.71, with P/free cash flow at 13.48.

ABB Ltd. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 1. This is with long term debt/equity at 0.5, and total debt/equity at 0.63.

In terms of margins, ABB Ltd. has a gross margin of 28.20%, an operating margin of 7.70% and a profit margin of 4.90%.Payout ratio for ABB Ltd. is 0.00%. Return on assets come to 4.00% with return on investment coming to 10.30%.

Insider ownership for ABB Ltd., is at *TBA and institutional ownership comes to 3.30%. Outstanding shares are at 2192.95. While shares float is 2000.55. The float short is currently 0.21%, and short ratio is 2.72.

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.

About the author

Mark Hines

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