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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 РMajor 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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