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Is this Large Market Cap Stock target price reasonable for KLA-Tencor Corporation (NASDAQ:KLAC)?

The company in question is, KLA-Tencor Corporation (NASDAQ:KLAC) currently with a stock price of 69.69 (-0.77% today). The market cap for KLA-Tencor Corporation is 10875.82, and is in the sector Technology, and Semiconductor Equipment & Materials industry. The target price for KLA-Tencor Corporation is 77. Currently KLA-Tencor Corporation is trading with a P/E of 15.48, and a forward P/E of 12.92. Average volume for KLA-Tencor Corporation is 1371.8 and so far today it is 1206200.

Performance in the last year for KLA-Tencor Corporation has been 42.56%. For EPS growth, KLA-Tencor Corporation has seen a growth of 100.90%, and is looking to grow in the next year to 9.70%. More long term stats show that EPS growth has been -0.70% over the last five years and could be 21.20% for the next five years. KLA-Tencor Corporation has seen sales growth quarter over quarter at 21.50%, with EPS growth quarter over quarter at 103.10%. The 20-day simple moving average is -3.46%, with the 200-day simple moving average coming to 0.51%.

Since the IPO date for KLA-Tencor Corporation on the 3/26/1990, KLA-Tencor Corporation has seen performance year to date to be 2.84%. With KLA-Tencor Corporation trading at 69.69, the dividend yield is 2.98%, and the EPS is 4.5.

So could KLA-Tencor Corporation, be undervalued? Well as said before P/E is 15.48. The PEG is 0.73, P/S is 3.64 and the P/B is at 15.73. The P/cash is 4.37, with P/free cash flow at 28.49.

KLA-Tencor Corporation ability to deal with debt shows that the current ratio is 3.9, and the quick ratio is 3.2. This is with long term debt/equity at 4.44, and total debt/equity at 4.44.

In terms of margins, KLA-Tencor Corporation has a gross margin of 61.10%, an operating margin of 32.20% and a profit margin of 23.60%.Payout ratio for KLA-Tencor Corporation is 46.00%. Return on assets come to 14.90% with return on investment coming to 21.50%.

Insider ownership for KLA-Tencor Corporation, is at 0.30% and institutional ownership comes to 88.60%. Outstanding shares are at 156.06. While shares float is 155.21. The float short is currently 1.39%, and short ratio is 1.57.

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.

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Stephen Butters

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