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Is this Large Market Cap Stock target price reasonable for Itau Unibanco Holding S.A. (NYSE:ITUB)?

The company in question is, Itau Unibanco Holding S.A. (NYSE:ITUB) currently with a stock price of 11.01 (-0.95% today). The market cap for Itau Unibanco Holding S.A. is 57982.64, and is in the sector Financial, and Foreign Regional Banks industry. The target price for Itau Unibanco Holding S.A. is 8.93. Currently Itau Unibanco Holding S.A. is trading with a P/E of 8.82, and a forward P/E of 11.65. Average volume for Itau Unibanco Holding S.A. is 14051.09 and so far today it is 9141102.

Performance in the last year for Itau Unibanco Holding S.A. has been 43.89%. For EPS growth, Itau Unibanco Holding S.A. has seen a growth of -5.50%, and is looking to grow in the next year to -6.84%. More long term stats show that EPS growth has been 9.60% over the last five years and could be 6.68% for the next five years. Itau Unibanco Holding S.A. has seen sales growth quarter over quarter at 15.30%, with EPS growth quarter over quarter at 14.90%. The 20-day simple moving average is 17.76%, with the 200-day simple moving average coming to 39.87%.

Since the IPO date for Itau Unibanco Holding S.A. on the 2/25/2002, Itau Unibanco Holding S.A. has seen performance year to date to be 76.19%. With Itau Unibanco Holding S.A. trading at 11.01, the dividend yield is 0.90%, and the EPS is 1.26.

So could Itau Unibanco Holding S.A., be undervalued? Well as said before P/E is 8.82. The PEG is 1.32, P/S is 1.25 and the P/B is at 1.82. The P/cash is 0.3, with P/free cash flow at 4.03.

Itau Unibanco Holding S.A. 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 2, and total debt/equity at 5.46.

In terms of margins, Itau Unibanco Holding S.A. has a gross margin of *TBA, an operating margin of 33.70% and a profit margin of 17.10%.Payout ratio for Itau Unibanco Holding S.A. is 22.70%. Return on assets come to 2.10% with return on investment coming to 8.00%.

Insider ownership for Itau Unibanco Holding S.A., is at 52.10% and institutional ownership comes to 25.50%. Outstanding shares are at 5218.96. While shares float is 2929.55. The float short is currently 1.13%, and short ratio is 2.36.

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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