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Is this Large Market Cap Stock target price reasonable for Expedia Inc. (NASDAQ:EXPE)?

The company in question is, Expedia Inc. (NASDAQ:EXPE) currently with a stock price of 112.52 (-0.92% today). The market cap for Expedia Inc. is 17477.29, and is in the sector Services, and Lodging industry. The target price for Expedia Inc. is 133.67. Currently Expedia Inc. is trading with a P/E of 75.01, and a forward P/E of 17.39. Average volume for Expedia Inc. is 1973.43 and so far today it is 114656.

Performance in the last year for Expedia Inc. has been -1.76%. For EPS growth, Expedia Inc. has seen a growth of 90.80%, and is looking to grow in the next year to 32.53%. More long term stats show that EPS growth has been 22.20% over the last five years and could be 28.14% for the next five years. Expedia Inc. has seen sales growth quarter over quarter at 32.10%, with EPS growth quarter over quarter at -93.90%. The 20-day simple moving average is -0.81%, with the 200-day simple moving average coming to 1.43%.

Since the IPO date for Expedia Inc. on the 7/21/2005, Expedia Inc. has seen performance year to date to be -8.01%. With Expedia Inc. trading at 112.52, the dividend yield is 0.92%, and the EPS is 1.51.

So could Expedia Inc., be undervalued? Well as said before P/E is 75.01. The PEG is 2.67, P/S is 2.26 and the P/B is at 4.04. The P/cash is 7.48, with P/free cash flow at 29.16.

Expedia Inc. ability to deal with debt shows that the current ratio is 0.6, and the quick ratio is 0.6. This is with long term debt/equity at 0.76, and total debt/equity at 0.76.

In terms of margins, Expedia Inc. has a gross margin of 80.90%, an operating margin of 3.90% and a profit margin of 2.50%.Payout ratio for Expedia Inc. is 60.90%. Return on assets come to 1.30% with return on investment coming to 8.90%.

Insider ownership for Expedia Inc., is at 0.60% and institutional ownership comes to 91.90%. Outstanding shares are at 153.89. While shares float is 120.15. The float short is currently 12.44%, and short ratio is 7.57.

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.

About the author

Peter Clarke

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