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Is this Large Market Cap Stock target price reasonable for CBS Corporation (NYSE:CBS)?

The company in question is, CBS Corporation (NYSE:CBS) currently with a stock price of 55.11 (-0.24% today). The market cap for CBS Corporation is 24586.22, and is in the sector Services, and Entertainment – Diversified industry. The target price for CBS Corporation is 63. Currently CBS Corporation is trading with a P/E of 16.39, and a forward P/E of 12.54. Average volume for CBS Corporation is 4319.3 and so far today it is 2913000.

Performance in the last year for CBS Corporation has been 29.26%. For EPS growth, CBS Corporation has seen a growth of 18.90%, and is looking to grow in the next year to 7.61%. More long term stats show that EPS growth has been 19.40% over the last five years and could be 16.95% for the next five years. CBS Corporation has seen sales growth quarter over quarter at 2.10%, with EPS growth quarter over quarter at 38.60%. The 20-day simple moving average is 4.85%, with the 200-day simple moving average coming to 6.17%.

Since the IPO date for CBS Corporation on the 12/5/2005, CBS Corporation has seen performance year to date to be 18.02%. With CBS Corporation trading at 55.11, the dividend yield is 1.31%, and the EPS is 3.36.

So could CBS Corporation, be undervalued? Well as said before P/E is 16.39. The PEG is 0.97, P/S is 1.72 and the P/B is at 4.61. The P/cash is 139.69, with P/free cash flow at 19.37.

CBS Corporation ability to deal with debt shows that the current ratio is 1.7, and the quick ratio is 1.3. This is with long term debt/equity at 1.53, and total debt/equity at 1.56.

In terms of margins, CBS Corporation has a gross margin of 40.60%, an operating margin of 18.80% and a profit margin of 11.10%.Payout ratio for CBS Corporation is 17.60%. Return on assets come to 6.70% with return on investment coming to 13.10%.

Insider ownership for CBS Corporation, is at 0.20% and institutional ownership comes to 86.00%. Outstanding shares are at 446.13. While shares float is 400.87. The float short is currently 4.83%, and short ratio is 4.49.

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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