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Is this Large Market Cap Stock target price reasonable for Check Point Software Technologies Ltd. (NASDAQ:CHKP)?

The company in question is, Check Point Software Technologies Ltd. (NASDAQ:CHKP) currently with a stock price of 97.37 (1.07% today). The market cap for Check Point Software Technologies Ltd. is 16567.59, and is in the sector Technology, and Security Software & Services industry. The target price for Check Point Software Technologies Ltd. is 84.79. Currently Check Point Software Technologies Ltd. is trading with a P/E of 24.31, and a forward P/E of 19.71. Average volume for Check Point Software Technologies Ltd. is 1435.74 and so far today it is 1371296.

Performance in the last year for Check Point Software Technologies Ltd. has been 29.23%. For EPS growth, Check Point Software Technologies Ltd. has seen a growth of 8.90%, and is looking to grow in the next year to 8.12%. More long term stats show that EPS growth has been 11.90% over the last five years and could be 10.38% for the next five years. Check Point Software Technologies Ltd. has seen sales growth quarter over quarter at 5.90%, with EPS growth quarter over quarter at 7.00%. The 20-day simple moving average is 14.29%, with the 200-day simple moving average coming to 19.51%.

Since the IPO date for Check Point Software Technologies Ltd. on the 6/28/1996, Check Point Software Technologies Ltd. has seen performance year to date to be 14.07%. With Check Point Software Technologies Ltd. trading at 97.37, the dividend yield is *TBA, and the EPS is 3.96.

So could Check Point Software Technologies Ltd., be undervalued? Well as said before P/E is 24.31. The PEG is 2.34, P/S is 9.67 and the P/B is at 4.71. The P/cash is 13.47, with P/free cash flow at 17.05.

Check Point Software Technologies Ltd. ability to deal with debt shows that the current ratio is 1.5, and the quick ratio is 1.5. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Check Point Software Technologies Ltd. has a gross margin of 88.40%, an operating margin of 49.60% and a profit margin of 40.70%.Payout ratio for Check Point Software Technologies Ltd. is 0.00%. Return on assets come to 13.90% with return on investment coming to 18.50%.

Insider ownership for Check Point Software Technologies Ltd., is at 24.80% and institutional ownership comes to 78.10%. Outstanding shares are at 171.97. While shares float is 128.52. The float short is currently 7.46%, and short ratio is 6.68.

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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