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Is this Large Market Cap Stock target price reasonable for Finisar Corp. (NASDAQ:FNSR)?

The company in question is, Finisar Corp. (NASDAQ:FNSR) currently with a stock price of 29.17 (-0.51% today). The market cap for Finisar Corp. is 3258.62, and is in the sector Technology, and Networking & Communication Devices industry. The target price for Finisar Corp. is 31.45. Currently Finisar Corp. is trading with a P/E of 57.6, and a forward P/E of 14.79. Average volume for Finisar Corp. is 1750.88 and so far today it is 573294.

Performance in the last year for Finisar Corp. has been 153.20%. For EPS growth, Finisar Corp. has seen a growth of 185.50%, and is looking to grow in the next year to 13.83%. More long term stats show that EPS growth has been -20.30% over the last five years and could be 17.50% for the next five years. Finisar Corp. has seen sales growth quarter over quarter at 8.70%, with EPS growth quarter over quarter at 588.50%. The 20-day simple moving average is 16.83%, with the 200-day simple moving average coming to 58.91%.

Since the IPO date for Finisar Corp. on the 11/12/1999, Finisar Corp. has seen performance year to date to be 101.65%. With Finisar Corp. trading at 29.17, the dividend yield is *TBA, and the EPS is 0.51.

So could Finisar Corp., be undervalued? Well as said before P/E is 57.6. The PEG is 3.29, P/S is 2.53 and the P/B is at 2.67. The P/cash is 5.49, with P/free cash flow at 34.96.

Finisar Corp. ability to deal with debt shows that the current ratio is 5.2, and the quick ratio is 4. This is with long term debt/equity at 0.19, and total debt/equity at 0.

In terms of margins, Finisar Corp. has a gross margin of 29.10%, an operating margin of 4.80% and a profit margin of 4.30%.Payout ratio for Finisar Corp. is 0.00%. Return on assets come to 3.40% with return on investment coming to 3.00%.

Insider ownership for Finisar Corp., is at 1.80% and institutional ownership comes to 92.90%. Outstanding shares are at 111.14. While shares float is 108.79. The float short is currently 5.82%, and short ratio is 3.61.

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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