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Is this Large Market Cap Stock target price reasonable for Blue Buffalo Pet Products, Inc. (NASDAQ:BUFF)?

The company in question is, Blue Buffalo Pet Products, Inc. (NASDAQ:BUFF) currently with a stock price of 24.82 (0.22% today). The market cap for Blue Buffalo Pet Products, Inc. is 4840.33, and is in the sector Consumer Goods, and Food – Major Diversified industry. The target price for Blue Buffalo Pet Products, Inc. is 30. Currently Blue Buffalo Pet Products, Inc. is trading with a P/E of 44.37, and a forward P/E of 28.14. Average volume for Blue Buffalo Pet Products, Inc. is 1309.76 and so far today it is 342669.

Performance in the last year for Blue Buffalo Pet Products, Inc. has been 27.76%. For EPS growth, Blue Buffalo Pet Products, Inc. has seen a growth of -13.20%, and is looking to grow in the next year to 15.64%. More long term stats show that EPS growth has been *TBA over the last five years and could be 18.54% for the next five years. Blue Buffalo Pet Products, Inc. has seen sales growth quarter over quarter at 13.00%, with EPS growth quarter over quarter at 61.20%. The 20-day simple moving average is -1.65%, with the 200-day simple moving average coming to 6.91%.

Since the IPO date for Blue Buffalo Pet Products, Inc. on the 7/22/2015, Blue Buffalo Pet Products, Inc. has seen performance year to date to be 32.34%. With Blue Buffalo Pet Products, Inc. trading at 24.82, the dividend yield is *TBA, and the EPS is 0.56.

So could Blue Buffalo Pet Products, Inc., be undervalued? Well as said before P/E is 44.37. The PEG is 2.39, P/S is 4.43 and the P/B is at 56.27. The P/cash is 17.69, with P/free cash flow at 51.66.

Blue Buffalo Pet Products, Inc. ability to deal with debt shows that the current ratio is 6.1, and the quick ratio is 4.9. This is with long term debt/equity at 4.44, and total debt/equity at 4.49.

In terms of margins, Blue Buffalo Pet Products, Inc. has a gross margin of 43.10%, an operating margin of 17.70% and a profit margin of 10.10%.Payout ratio for Blue Buffalo Pet Products, Inc. is 0.00%. Return on assets come to 21.20% with return on investment coming to 26.30%.

Insider ownership for Blue Buffalo Pet Products, Inc., is at 12.59% and institutional ownership comes to 83.40%. Outstanding shares are at 195.49. While shares float is 178.59. The float short is currently 4.89%, and short ratio is 6.66.

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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