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Is this Large Market Cap Stock target price reasonable for Fortune Brands Home & Security, Inc. (NYSE:FBHS)?

The company in question is, Fortune Brands Home & Security, Inc. (NYSE:FBHS) currently with a stock price of 55.42 (0.53% today). The market cap for Fortune Brands Home & Security, Inc. is 8765.12, and is in the sector Consumer Goods, and Home Furnishings & Fixtures industry. The target price for Fortune Brands Home & Security, Inc. is 66.27. Currently Fortune Brands Home & Security, Inc. is trading with a P/E of 23.67, and a forward P/E of 17.52. Average volume for Fortune Brands Home & Security, Inc. is 1258.26 and so far today it is 394705.

Performance in the last year for Fortune Brands Home & Security, Inc. has been 16.99%. For EPS growth, Fortune Brands Home & Security, Inc. has seen a growth of 14.60%, and is looking to grow in the next year to 14.73%. More long term stats show that EPS growth has been 35.50% over the last five years and could be 15.70% for the next five years. Fortune Brands Home & Security, Inc. has seen sales growth quarter over quarter at 11.40%, with EPS growth quarter over quarter at 65.80%. The 20-day simple moving average is -8.05%, with the 200-day simple moving average coming to -1.14%.

Since the IPO date for Fortune Brands Home & Security, Inc. on the 9/16/2011, Fortune Brands Home & Security, Inc. has seen performance year to date to be 0.17%. With Fortune Brands Home & Security, Inc. trading at 55.42, the dividend yield is 1.16%, and the EPS is 2.33.

So could Fortune Brands Home & Security, Inc., be undervalued? Well as said before P/E is 23.67. The PEG is 1.51, P/S is 1.8 and the P/B is at 3.71. The P/cash is 31.45, with P/free cash flow at 26.12.

Fortune Brands Home & Security, Inc. ability to deal with debt shows that the current ratio is 2.1, and the quick ratio is 1.3. This is with long term debt/equity at 0.7, and total debt/equity at 0.7.

In terms of margins, Fortune Brands Home & Security, Inc. has a gross margin of 35.10%, an operating margin of 12.00% and a profit margin of 7.80%.Payout ratio for Fortune Brands Home & Security, Inc. is 24.60%. Return on assets come to 7.60% with return on investment coming to 9.50%.

Insider ownership for Fortune Brands Home & Security, Inc., is at 0.60% and institutional ownership comes to 94.80%. Outstanding shares are at 158.99. While shares float is 150.67. The float short is currently 5.29%, and short ratio is 6.34.

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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Stephen Butters

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