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Is this Large Market Cap Stock target price reasonable for Monster Beverage Corporation (NASDAQ:MNST)?

The company in question is, Monster Beverage Corporation (NASDAQ:MNST) currently with a stock price of 146.21 (-1.41% today). The market cap for Monster Beverage Corporation is 29108.32, and is in the sector Consumer Goods, and Beverages – Soft Drinks industry. The target price for Monster Beverage Corporation is 178. Currently Monster Beverage Corporation is trading with a P/E of 46.3, and a forward P/E of 31.19. Average volume for Monster Beverage Corporation is 995.48 and so far today it is 63132.

Performance in the last year for Monster Beverage Corporation has been 11.70%. For EPS growth, Monster Beverage Corporation has seen a growth of 2.40%, and is looking to grow in the next year to 21.77%. More long term stats show that EPS growth has been 20.00% over the last five years and could be 21.30% for the next five years. Monster Beverage Corporation has seen sales growth quarter over quarter at 19.30%, with EPS growth quarter over quarter at -28.80%. The 20-day simple moving average is -7.62%, with the 200-day simple moving average coming to 0.41%.

Since the IPO date for Monster Beverage Corporation on the 8/18/1995, Monster Beverage Corporation has seen performance year to date to be -0.44%. With Monster Beverage Corporation trading at 146.21, the dividend yield is *TBA, and the EPS is 3.2.

So could Monster Beverage Corporation, be undervalued? Well as said before P/E is 46.3. The PEG is 2.17, P/S is 10 and the P/B is at 9.34. The P/cash is 60.76, with P/free cash flow at 70.57.

Monster Beverage Corporation ability to deal with debt shows that the current ratio is 2.6, and the quick ratio is 2.2. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Monster Beverage Corporation has a gross margin of 62.20%, an operating margin of 36.50% and a profit margin of 22.70%.Payout ratio for Monster Beverage Corporation is 0.00%. Return on assets come to 12.50% with return on investment coming to 11.40%.

Insider ownership for Monster Beverage Corporation, is at 1.40% and institutional ownership comes to 68.50%. Outstanding shares are at 196.28. While shares float is 129.91. The float short is currently 2.67%, and short ratio is 3.49.

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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