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

The company in question is, Ciena Corporation (NYSE:CIEN) currently with a stock price of 20.75 (-0.45% today). The market cap for Ciena Corporation is 2948.03, and is in the sector Technology, and Communication Equipment industry. The target price for Ciena Corporation is 26.31. Currently Ciena Corporation is trading with a P/E of 187.75, and a forward P/E of 12.16. Average volume for Ciena Corporation is 2780.71 and so far today it is 1601579.

Performance in the last year for Ciena Corporation has been -6.71%. For EPS growth, Ciena Corporation has seen a growth of 125.30%, and is looking to grow in the next year to 19.94%. More long term stats show that EPS growth has been 15.20% over the last five years and could be 16.67% for the next five years. Ciena Corporation has seen sales growth quarter over quarter at 11.20%, with EPS growth quarter over quarter at 11.70%. The 20-day simple moving average is -4.06%, with the 200-day simple moving average coming to 7.58%.

Since the IPO date for Ciena Corporation on the 02/07/1997, Ciena Corporation has seen performance year to date to be 0.72%. With Ciena Corporation trading at 20.75, the dividend yield is *TBA, and the EPS is 0.11.

So could Ciena Corporation, be undervalued? Well as said before P/E is 187.75. The PEG is 11.26, P/S is 1.14 and the P/B is at 4.01. The P/cash is 2.56, with P/free cash flow at 22.02.

Ciena Corporation ability to deal with debt shows that the current ratio is 1.9, and the quick ratio is 1.7. This is with long term debt/equity at 1.42, and total debt/equity at 2.06.

In terms of margins, Ciena Corporation has a gross margin of 44.50%, an operating margin of 4.10% and a profit margin of 0.90%.Payout ratio for Ciena Corporation is 0.00%. Return on assets come to 0.80% with return on investment coming to 4.70%.

Insider ownership for Ciena Corporation, is at 1.50% and institutional ownership comes to 97.10%. Outstanding shares are at 141.46. While shares float is 137.81. The float short is currently 8.45%, and short ratio is 4.19.

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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