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Is this Large Market Cap Stock target price reasonable for L Brands, Inc. (NYSE:LB)?

The company in question is, L Brands, Inc. (NYSE:LB) currently with a stock price of 71.17 (0.55% today). The market cap for L Brands, Inc. is 20466.74, and is in the sector Services, and Apparel Stores industry. The target price for L Brands, Inc. is 70.15. Currently L Brands, Inc. is trading with a P/E of 18.18, and a forward P/E of 17.66. Average volume for L Brands, Inc. is 3160.4 and so far today it is 817047.

Performance in the last year for L Brands, Inc. has been -11.09%. For EPS growth, L Brands, Inc. has seen a growth of 20.70%, and is looking to grow in the next year to 7.74%. More long term stats show that EPS growth has been 11.80% over the last five years and could be 11.10% for the next five years. L Brands, Inc. has seen sales growth quarter over quarter at 4.10%, with EPS growth quarter over quarter at -38.00%. The 20-day simple moving average is 5.17%, with the 200-day simple moving average coming to -13.54%.

Since the IPO date for L Brands, Inc. on the 7/1/1985, L Brands, Inc. has seen performance year to date to be -23.08%. With L Brands, Inc. trading at 71.17, the dividend yield is 3.39%, and the EPS is 3.89.

So could L Brands, Inc., be undervalued? Well as said before P/E is 18.18. The PEG is 1.64, P/S is 1.67 and the P/B is at *TBA. The P/cash is *TBA, with P/free cash flow at *TBA.

L Brands, Inc. ability to deal with debt shows that the current ratio is 1.9, and the quick ratio is 1.1. This is with long term debt/equity at *TBA, and total debt/equity at *TBA.

In terms of margins, L Brands, Inc. has a gross margin of 42.40%, an operating margin of 17.50% and a profit margin of 9.40%.Payout ratio for L Brands, Inc. is 52.60%. Return on assets come to 15.00% with return on investment coming to 27.70%.

Insider ownership for L Brands, Inc., is at 0.20% and institutional ownership comes to 77.10%. Outstanding shares are at 289.16. While shares float is 242.01. The float short is currently 4.77%, and short ratio is 3.65.

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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