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Is this Large Market Cap Stock target price reasonable for Allison Transmission Holdings, Inc. (NYSE:ALSN)?

The company in question is, Allison Transmission Holdings, Inc. (NYSE:ALSN) currently with a stock price of 27.8 (0.11% today). The market cap for Allison Transmission Holdings, Inc. is 4668.97, and is in the sector Consumer Goods, and Auto Parts industry. The target price for Allison Transmission Holdings, Inc. is 30.8. Currently Allison Transmission Holdings, Inc. is trading with a P/E of 28.31, and a forward P/E of 21.85. Average volume for Allison Transmission Holdings, Inc. is 1133.7 and so far today it is 416564.

Performance in the last year for Allison Transmission Holdings, Inc. has been 0.22%. For EPS growth, Allison Transmission Holdings, Inc. has seen a growth of -18.00%, and is looking to grow in the next year to 15.23%. More long term stats show that EPS growth has been 44.50% over the last five years and could be 12.12% for the next five years. Allison Transmission Holdings, Inc. has seen sales growth quarter over quarter at -7.10%, with EPS growth quarter over quarter at 18.10%. The 20-day simple moving average is -0.34%, with the 200-day simple moving average coming to 4.37%.

Since the IPO date for Allison Transmission Holdings, Inc. on the 3/15/2012, Allison Transmission Holdings, Inc. has seen performance year to date to be 9.15%. With Allison Transmission Holdings, Inc. trading at 27.8, the dividend yield is 2.16%, and the EPS is 0.98.

So could Allison Transmission Holdings, Inc., be undervalued? Well as said before P/E is 28.31. The PEG is 2.34, P/S is 2.45 and the P/B is at 4.04. The P/cash is 12.81, with P/free cash flow at 10.07.

Allison Transmission Holdings, Inc. ability to deal with debt shows that the current ratio is 2.2, and the quick ratio is 1.7. This is with long term debt/equity at 2.02, and total debt/equity at 2.04.

In terms of margins, Allison Transmission Holdings, Inc. has a gross margin of 47.20%, an operating margin of 20.30% and a profit margin of 8.80%.Payout ratio for Allison Transmission Holdings, Inc. is 60.80%. Return on assets come to 3.80% with return on investment coming to 9.00%.

Insider ownership for Allison Transmission Holdings, Inc., is at 0.10% and institutional ownership comes to 96.40%. Outstanding shares are at 168.13. While shares float is 166.68. The float short is currently 1.04%, and short ratio is 1.53.

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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Peter Clarke

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