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Is this Large Market Cap Stock target price reasonable for Mentor Graphics Corp. (NASDAQ:MENT)?

The company in question is, Mentor Graphics Corp. (NASDAQ:MENT) currently with a stock price of 27.48 (-1.59% today). The market cap for Mentor Graphics Corp. is 2995.82, and is in the sector Technology, and Technical & System Software industry. The target price for Mentor Graphics Corp. is 24.05. Currently Mentor Graphics Corp. is trading with a P/E of 51.51, and a forward P/E of 15.08. Average volume for Mentor Graphics Corp. is 1368.63 and so far today it is 1043168.

Performance in the last year for Mentor Graphics Corp. has been 11.34%. For EPS growth, Mentor Graphics Corp. has seen a growth of -35.60%, and is looking to grow in the next year to 10.04%. More long term stats show that EPS growth has been 25.50% over the last five years and could be 10.00% for the next five years. Mentor Graphics Corp. has seen sales growth quarter over quarter at -9.50%, with EPS growth quarter over quarter at -88.00%. The 20-day simple moving average is 14.49%, with the 200-day simple moving average coming to 32.09%.

Since the IPO date for Mentor Graphics Corp. on the 1/18/1984, Mentor Graphics Corp. has seen performance year to date to be 52.75%. With Mentor Graphics Corp. trading at 27.48, the dividend yield is 0.79%, and the EPS is 0.54.

So could Mentor Graphics Corp., be undervalued? Well as said before P/E is 51.51. The PEG is 5.15, P/S is 2.7 and the P/B is at 2.48. The P/cash is 11.27, with P/free cash flow at 24.6.

Mentor Graphics Corp. ability to deal with debt shows that the current ratio is 2.2, and the quick ratio is 2.1. This is with long term debt/equity at 0.2, and total debt/equity at 0.21.

In terms of margins, Mentor Graphics Corp. has a gross margin of 83.20%, an operating margin of 8.90% and a profit margin of 5.90%.Payout ratio for Mentor Graphics Corp. is 39.80%. Return on assets come to 3.30% with return on investment coming to 7.00%.

Insider ownership for Mentor Graphics Corp., is at 1.20% and institutional ownership comes to *TBA. Outstanding shares are at 107.3. While shares float is 107.09. The float short is currently 8.35%, and short ratio is 6.53.

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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Peter Clarke

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