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Is this Large Market Cap Stock target price reasonable for AmTrust Financial Services, Inc. (NASDAQ:AFSI)?

The company in question is, AmTrust Financial Services, Inc. (NASDAQ:AFSI) currently with a stock price of 27.71 (0.54% today). The market cap for AmTrust Financial Services, Inc. is 4696.5, and is in the sector Financial, and Property & Casualty Insurance industry. The target price for AmTrust Financial Services, Inc. is 36.7. Currently AmTrust Financial Services, Inc. is trading with a P/E of 9.83, and a forward P/E of 8.37. Average volume for AmTrust Financial Services, Inc. is 704.51 and so far today it is 215848.

Performance in the last year for AmTrust Financial Services, Inc. has been -14.45%. For EPS growth, AmTrust Financial Services, Inc. has seen a growth of 2.90%, and is looking to grow in the next year to 8.01%. More long term stats show that EPS growth has been 23.50% over the last five years and could be 12.00% for the next five years. AmTrust Financial Services, Inc. has seen sales growth quarter over quarter at -37.00%, with EPS growth quarter over quarter at -41.80%. The 20-day simple moving average is 5.64%, with the 200-day simple moving average coming to 7.88%.

Since the IPO date for AmTrust Financial Services, Inc. on the 11/28/2006, AmTrust Financial Services, Inc. has seen performance year to date to be -8.83%. With AmTrust Financial Services, Inc. trading at 27.71, the dividend yield is 2.25%, and the EPS is 2.8.

So could AmTrust Financial Services, Inc., be undervalued? Well as said before P/E is 9.83. The PEG is 0.82, P/S is 0.91 and the P/B is at 1.81. The P/cash is 4.65, with P/free cash flow at 4.44.

AmTrust Financial Services, Inc. ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0.47, and total debt/equity at 0.

In terms of margins, AmTrust Financial Services, Inc. has a gross margin of *TBA, an operating margin of 12.10% and a profit margin of 9.40%.Payout ratio for AmTrust Financial Services, Inc. is 21.10%. Return on assets come to 2.60% with return on investment coming to 13.10%.

Insider ownership for AmTrust Financial Services, Inc., is at 10.70% and institutional ownership comes to 44.60%. Outstanding shares are at 170.41. While shares float is 76.65. The float short is currently 8.00%, and short ratio is 8.7.

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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