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Is this Large Market Cap Stock target price reasonable for Shire plc (NASDAQ:SHPG)?

The company in question is, Shire plc (NASDAQ:SHPG) currently with a stock price of 185.79 (-1.02% today). The market cap for Shire plc is 56467.15, and is in the sector Healthcare, and Drug Manufacturers – Major industry. The target price for Shire plc is 253.69. Currently Shire plc is trading with a P/E of 29.5, and a forward P/E of 12.14. Average volume for Shire plc is 969.01 and so far today it is 928300.

Performance in the last year for Shire plc has been -10.94%. For EPS growth, Shire plc has seen a growth of -59.40%, and is looking to grow in the next year to 18.17%. More long term stats show that EPS growth has been 16.50% over the last five years and could be 14.18% for the next five years. Shire plc has seen sales growth quarter over quarter at 56.00%, with EPS growth quarter over quarter at -54.20%. The 20-day simple moving average is -5.03%, with the 200-day simple moving average coming to 2.27%.

Since the IPO date for Shire plc on the 3/25/1998, Shire plc has seen performance year to date to be -8.92%. With Shire plc trading at 185.79, the dividend yield is 0.43%, and the EPS is 6.3.

So could Shire plc, be undervalued? Well as said before P/E is 29.5. The PEG is 2.08, P/S is 7.52 and the P/B is at 1.42. The P/cash is 81.44, with P/free cash flow at *TBA.

Shire plc ability to deal with debt shows that the current ratio is 1.4, and the quick ratio is 0.6. This is with long term debt/equity at 0.72, and total debt/equity at 0.81.

In terms of margins, Shire plc has a gross margin of 79.50%, an operating margin of 19.30% and a profit margin of 13.20%.Payout ratio for Shire plc is 20.20%. Return on assets come to 3.10% with return on investment coming to 12.00%.

Insider ownership for Shire plc, is at 0.10% and institutional ownership comes to 24.50%. Outstanding shares are at 303.93. While shares float is 182.42. The float short is currently 1.04%, and short ratio is 1.96.

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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