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Is this Large Market Cap Stock target price reasonable for E*TRADE Financial Corporation (NASDAQ:ETFC)?

The company in question is, E*TRADE Financial Corporation (NASDAQ:ETFC) currently with a stock price of 28.54 (1.49% today). The market cap for E*TRADE Financial Corporation is 7719.5, and is in the sector Financial, and Investment Brokerage – National industry. The target price for E*TRADE Financial Corporation is 30.8. Currently E*TRADE Financial Corporation is trading with a P/E of 35.73, and a forward P/E of 16.14. Average volume for E*TRADE Financial Corporation is 2913.8 and so far today it is 1143520.

Performance in the last year for E*TRADE Financial Corporation has been 10.40%. For EPS growth, E*TRADE Financial Corporation has seen a growth of -8.80%, and is looking to grow in the next year to 2.35%. More long term stats show that EPS growth has been 54.30% over the last five years and could be 17.69% for the next five years. E*TRADE Financial Corporation has seen sales growth quarter over quarter at 10.50%, with EPS growth quarter over quarter at -51.70%. The 20-day simple moving average is 5.49%, with the 200-day simple moving average coming to 12.46%.

Since the IPO date for E*TRADE Financial Corporation on the 8/16/1996, E*TRADE Financial Corporation has seen performance year to date to be -5.13%. With E*TRADE Financial Corporation trading at 28.54, the dividend yield is *TBA, and the EPS is 0.79.

So could E*TRADE Financial Corporation, be undervalued? Well as said before P/E is 35.73. The PEG is 2.02, P/S is 5.24 and the P/B is at 1.35. The P/cash is 1.83, with P/free cash flow at 11.12.

E*TRADE Financial Corporation ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0.24, and total debt/equity at 5.94.

In terms of margins, E*TRADE Financial Corporation has a gross margin of 93.60%, an operating margin of 23.50% and a profit margin of 15.10%.Payout ratio for E*TRADE Financial Corporation is 0.00%. Return on assets come to 0.50% with return on investment coming to 0.90%.

Insider ownership for E*TRADE Financial Corporation, is at 0.30% and institutional ownership comes to 94.60%. Outstanding shares are at 274.52. While shares float is 272.44. The float short is currently 1.85%, and short ratio is 1.73.

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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