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Is this Large Market Cap Stock target price reasonable for Medidata Solutions, Inc. (NASDAQ:MDSO)?

The company in question is, Medidata Solutions, Inc. (NASDAQ:MDSO) currently with a stock price of 50.7 (-3.10% today). The market cap for Medidata Solutions, Inc. is 2990.09, and is in the sector Technology, and Healthcare Information Services industry. The target price for Medidata Solutions, Inc. is 57.44. Currently Medidata Solutions, Inc. is trading with a P/E of 133.81, and a forward P/E of 42.13. Average volume for Medidata Solutions, Inc. is 371.65 and so far today it is 321419.

Performance in the last year for Medidata Solutions, Inc. has been 36.96%. For EPS growth, Medidata Solutions, Inc. has seen a growth of 111.20%, and is looking to grow in the next year to 22.97%. More long term stats show that EPS growth has been -13.30% over the last five years and could be 20.45% for the next five years. Medidata Solutions, Inc. has seen sales growth quarter over quarter at 16.80%, with EPS growth quarter over quarter at 223.90%. The 20-day simple moving average is -7.26%, with the 200-day simple moving average coming to 10.88%.

Since the IPO date for Medidata Solutions, Inc. on the 6/25/2009, Medidata Solutions, Inc. has seen performance year to date to be 6.15%. With Medidata Solutions, Inc. trading at 50.7, the dividend yield is *TBA, and the EPS is 0.39.

So could Medidata Solutions, Inc., be undervalued? Well as said before P/E is 133.81. The PEG is 6.54, P/S is 7.11 and the P/B is at 9.21. The P/cash is 9.4, with P/free cash flow at 42.9.

Medidata Solutions, Inc. ability to deal with debt shows that the current ratio is 3.7, and the quick ratio is 3.7. This is with long term debt/equity at 0.81, and total debt/equity at 0.81.

In terms of margins, Medidata Solutions, Inc. has a gross margin of 76.60%, an operating margin of 9.20% and a profit margin of 5.30%.Payout ratio for Medidata Solutions, Inc. is 0.00%. Return on assets come to 3.20% with return on investment coming to 5.00%.

Insider ownership for Medidata Solutions, Inc., is at 4.40% and institutional ownership comes to *TBA. Outstanding shares are at 57.15. While shares float is 54.87. The float short is currently 8.02%, and short ratio is 11.85.

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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Mark Hines

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