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Is this Large Market Cap Stock target price reasonable for China Telecom Corp. Ltd. (NYSE:CHA)?

The company in question is, China Telecom Corp. Ltd. (NYSE:CHA) currently with a stock price of 49.76 (0.12% today). The market cap for China Telecom Corp. Ltd. is 40109.05, and is in the sector Technology, and Telecom Services – Foreign industry. The target price for China Telecom Corp. Ltd. is 60.77. Currently China Telecom Corp. Ltd. is trading with a P/E of 12.95, and a forward P/E of 12.93. Average volume for China Telecom Corp. Ltd. is 33.41 and so far today it is 22129.

Performance in the last year for China Telecom Corp. Ltd. has been -0.36%. For EPS growth, China Telecom Corp. Ltd. has seen a growth of 13.40%, and is looking to grow in the next year to 11.54%. More long term stats show that EPS growth has been 5.50% over the last five years and could be 16.90% for the next five years. China Telecom Corp. Ltd. has seen sales growth quarter over quarter at 117.10%, with EPS growth quarter over quarter at 131.30%. The 20-day simple moving average is -0.98%, with the 200-day simple moving average coming to 2.99%.

Since the IPO date for China Telecom Corp. Ltd. on the 11/14/2002, China Telecom Corp. Ltd. has seen performance year to date to be 7.13%. With China Telecom Corp. Ltd. trading at 49.76, the dividend yield is 2.47%, and the EPS is 3.84.

So could China Telecom Corp. Ltd., be undervalued? Well as said before P/E is 12.95. The PEG is 0.77, P/S is 0.78 and the P/B is at 0.87. The P/cash is 8.13, with P/free cash flow at *TBA.

China Telecom Corp. Ltd. ability to deal with debt shows that the current ratio is 0.3, and the quick ratio is 0.3. This is with long term debt/equity at 0.23, and total debt/equity at 0.34.

In terms of margins, China Telecom Corp. Ltd. has a gross margin of 73.30%, an operating margin of *TBA and a profit margin of *TBA.Payout ratio for China Telecom Corp. Ltd. is *TBA. Return on assets come to *TBA with return on investment coming to 4.70%.

Insider ownership for China Telecom Corp. Ltd., is at 45.30% and institutional ownership comes to 3.40%. Outstanding shares are at 806.05. While shares float is 13.74. The float short is currently 0.41%, and short ratio is 1.67.

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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