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Is this Large Market Cap Stock target price reasonable for Melco Crown Entertainment Limited (NASDAQ:MPEL)?

The company in question is, Melco Crown Entertainment Limited (NASDAQ:MPEL) currently with a stock price of 15.65 (-0.70% today). The market cap for Melco Crown Entertainment Limited is 8500.94, and is in the sector Services, and Resorts & Casinos industry. The target price for Melco Crown Entertainment Limited is 16.58. Currently Melco Crown Entertainment Limited is trading with a P/E of 91.63, and a forward P/E of 42.59. Average volume for Melco Crown Entertainment Limited is 3140.21 and so far today it is 2924664.

Performance in the last year for Melco Crown Entertainment Limited has been -8.16%. For EPS growth, Melco Crown Entertainment Limited has seen a growth of -82.30%, and is looking to grow in the next year to 25.42%. More long term stats show that EPS growth has been 64.00% over the last five years and could be 8.00% for the next five years. Melco Crown Entertainment Limited has seen sales growth quarter over quarter at 16.80%, with EPS growth quarter over quarter at 34.90%. The 20-day simple moving average is 4.12%, with the 200-day simple moving average coming to 7.22%.

Since the IPO date for Melco Crown Entertainment Limited on the 12/19/2006, Melco Crown Entertainment Limited has seen performance year to date to be -1.98%. With Melco Crown Entertainment Limited trading at 15.65, the dividend yield is 0.44%, and the EPS is 0.17.

So could Melco Crown Entertainment Limited, be undervalued? Well as said before P/E is 91.63. The PEG is 11.45, P/S is 2.03 and the P/B is at 2.45. The P/cash is 6.34, with P/free cash flow at *TBA.

Melco Crown Entertainment Limited ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1.6. This is with long term debt/equity at 1.2, and total debt/equity at 1.27.

In terms of margins, Melco Crown Entertainment Limited has a gross margin of 30.00%, an operating margin of 3.50% and a profit margin of 2.20%.Payout ratio for Melco Crown Entertainment Limited is 7.80%. Return on assets come to 0.90% with return on investment coming to 1.10%.

Insider ownership for Melco Crown Entertainment Limited, is at 33.50% and institutional ownership comes to 30.40%. Outstanding shares are at 539.4. While shares float is 217.39. The float short is currently 7.15%, and short ratio is 4.95.

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.

About the author

Peter Clarke

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