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Is this Large Market Cap Stock target price reasonable for DCP Midstream Partners LP (NYSE:DPM)?

The company in question is, DCP Midstream Partners LP (NYSE:DPM) currently with a stock price of 35.04 (-1.46% today). The market cap for DCP Midstream Partners LP is 4023.61, and is in the sector Basic Materials, and Oil & Gas Pipelines industry. The target price for DCP Midstream Partners LP is 35.21. Currently DCP Midstream Partners LP is trading with a P/E of 26.48, and a forward P/E of 17.01. Average volume for DCP Midstream Partners LP is 363.36 and so far today it is 81117.

Performance in the last year for DCP Midstream Partners LP has been 43.61%. For EPS growth, DCP Midstream Partners LP has seen a growth of -68.10%, and is looking to grow in the next year to 53.45%. More long term stats show that EPS growth has been 1.00% over the last five years and could be -3.27% for the next five years. DCP Midstream Partners LP has seen sales growth quarter over quarter at -19.10%, with EPS growth quarter over quarter at 142.40%. The 20-day simple moving average is 2.33%, with the 200-day simple moving average coming to 21.49%.

Since the IPO date for DCP Midstream Partners LP on the 12/06/2005, DCP Midstream Partners LP has seen performance year to date to be 57.46%. With DCP Midstream Partners LP trading at 35.04, the dividend yield is 8.77%, and the EPS is 1.34.

So could DCP Midstream Partners LP, be undervalued? Well as said before P/E is 26.48. The PEG is *TBA, P/S is 2.47 and the P/B is at 1.55. The P/cash is 4023.61, with P/free cash flow at 121.93.

DCP Midstream Partners LP ability to deal with debt shows that the current ratio is 1.5, and the quick ratio is 1.4. This is with long term debt/equity at 0.9, and total debt/equity at 0.

In terms of margins, DCP Midstream Partners LP has a gross margin of 38.50%, an operating margin of 10.50% and a profit margin of 9.50%.Payout ratio for DCP Midstream Partners LP is 232.30%. Return on assets come to 2.80% with return on investment coming to 2.90%.

Insider ownership for DCP Midstream Partners LP, is at 19.60% and institutional ownership comes to 69.00%. Outstanding shares are at 113.15. While shares float is 92.37. The float short is currently 4.81%, and short ratio is 12.22.

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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