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Is this Large Market Cap Stock target price reasonable for Prosperity Bancshares Inc. (NYSE:PB)?

The company in question is, Prosperity Bancshares Inc. (NYSE:PB) currently with a stock price of 54.49 (1.57% today). The market cap for Prosperity Bancshares Inc. is 3754.96, and is in the sector Financial, and Regional РSouthwest Banks industry. The target price for Prosperity Bancshares Inc. is 55.14. Currently Prosperity Bancshares Inc. is trading with a P/E of 13.5, and a forward P/E of 13.3. Average volume for Prosperity Bancshares Inc. is 322.59 and so far today it is 75048.

Performance in the last year for Prosperity Bancshares Inc. has been 13.27%. For EPS growth, Prosperity Bancshares Inc. has seen a growth of -5.20%, and is looking to grow in the next year to 2.26%. More long term stats show that EPS growth has been 8.50% over the last five years and could be 10.00% for the next five years. Prosperity Bancshares Inc. has seen sales growth quarter over quarter at 0.90%, with EPS growth quarter over quarter at -4.70%. The 20-day simple moving average is 1.20%, with the 200-day simple moving average coming to 12.51%.

Since the IPO date for Prosperity Bancshares Inc. on the 11/12/1998, Prosperity Bancshares Inc. has seen performance year to date to be 14.18%. With Prosperity Bancshares Inc. trading at 54.49, the dividend yield is 2.24%, and the EPS is 3.98.

So could Prosperity Bancshares Inc., be undervalued? Well as said before P/E is 13.5. The PEG is 1.35, P/S is 5.56 and the P/B is at 1.05. The P/cash is 9.73, with P/free cash flow at 14.89.

Prosperity Bancshares Inc. ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Prosperity Bancshares Inc. has a gross margin of *TBA, an operating margin of 90.20% and a profit margin of 41.20%.Payout ratio for Prosperity Bancshares Inc. is 29.50%. Return on assets come to 1.30% with return on investment coming to 13.80%.

Insider ownership for Prosperity Bancshares Inc., is at 1.50% and institutional ownership comes to 75.90%. Outstanding shares are at 69.99. While shares float is 66.04. The float short is currently 7.88%, and short ratio is 16.12.

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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