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Is this Large Market Cap Stock target price reasonable for Chunghwa Telecom Co., Ltd. (NYSE:CHT)?

The company in question is, Chunghwa Telecom Co., Ltd. (NYSE:CHT) currently with a stock price of 35.35 (-1.23% today). The market cap for Chunghwa Telecom Co., Ltd. is 28628.06, and is in the sector Technology, and Telecom Services – Domestic industry. The target price for Chunghwa Telecom Co., Ltd. is 36.49. Currently Chunghwa Telecom Co., Ltd. is trading with a P/E of 19.8, and a forward P/E of 19.24. Average volume for Chunghwa Telecom Co., Ltd. is 206.69 and so far today it is 13055.

Performance in the last year for Chunghwa Telecom Co., Ltd. has been 18.08%. For EPS growth, Chunghwa Telecom Co., Ltd. has seen a growth of 10.80%, and is looking to grow in the next year to 5.08%. More long term stats show that EPS growth has been 2.10% over the last five years and could be 4.20% for the next five years. Chunghwa Telecom Co., Ltd. has seen sales growth quarter over quarter at -1.30%, with EPS growth quarter over quarter at -0.40%. The 20-day simple moving average is -3.32%, with the 200-day simple moving average coming to 5.41%.

Since the IPO date for Chunghwa Telecom Co., Ltd. on the 10/9/2003, Chunghwa Telecom Co., Ltd. has seen performance year to date to be 19.18%. With Chunghwa Telecom Co., Ltd. trading at 35.35, the dividend yield is 4.83%, and the EPS is 1.81.

So could Chunghwa Telecom Co., Ltd., be undervalued? Well as said before P/E is 19.8. The PEG is 4.71, P/S is 3.87 and the P/B is at 2.49. The P/cash is 17.13, with P/free cash flow at 26.06.

Chunghwa Telecom Co., Ltd. ability to deal with debt shows that the current ratio is 1, and the quick ratio is 1. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Chunghwa Telecom Co., Ltd. has a gross margin of 36.90%, an operating margin of 22.40% and a profit margin of 19.00%.Payout ratio for Chunghwa Telecom Co., Ltd. is 96.70%. Return on assets come to 9.70% with return on investment coming to 11.30%.

Insider ownership for Chunghwa Telecom Co., Ltd., is at 38.10% and institutional ownership comes to 5.70%. Outstanding shares are at 799.89. While shares float is 420.96. The float short is currently 0.17%, and short ratio is 3.41.

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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Tony Dabbs

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