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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 49.42 (1.16% today). The market cap for China Telecom Corp. Ltd. is 39953.31, and is in the sector Technology, and Telecom Services РForeign industry. The target price for China Telecom Corp. Ltd. is 63.79. Currently China Telecom Corp. Ltd. is trading with a P/E of 15.34, and a forward P/E of 13.69. Average volume for China Telecom Corp. Ltd. is 35.55 and so far today it is 10742.

Performance in the last year for China Telecom Corp. Ltd. has been -16.46%. For EPS growth, China Telecom Corp. Ltd. has seen a growth of -25.90%, and is looking to grow in the next year to 21.22%. More long term stats show that EPS growth has been 7.10% over the last five years and could be 3.60% for the next five years. China Telecom Corp. Ltd. has seen sales growth quarter over quarter at -31.80%, with EPS growth quarter over quarter at 1.40%. The 20-day simple moving average is 7.04%, with the 200-day simple moving average coming to 2.06%.

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 5.19%. With China Telecom Corp. Ltd. trading at 49.42, the dividend yield is 2.50%, and the EPS is 3.19.

So could China Telecom Corp. Ltd., be undervalued? Well as said before P/E is 15.34. The PEG is 4.26, P/S is 0.83 and the P/B is at 0.87. The P/cash is 7.76, 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 0.21, and total debt/equity at 0.38.

In terms of margins, China Telecom Corp. Ltd. has a gross margin of 75.60%, an operating margin of 8.20% 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 817.71. While shares float is 13.74. The float short is currently 0.78%, and short ratio is 3.

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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Mark Hines

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