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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 191.67 (-1.12% today). The market cap for Shire plc is 56632.73, and is in the sector Healthcare, and Drug Manufacturers – Major industry. The target price for Shire plc is 252.54. Currently Shire plc is trading with a P/E of 30.44, and a forward P/E of 12.59. Average volume for Shire plc is 2219.48 and so far today it is 871500.

Performance in the last year for Shire plc has been -13.95%. For EPS growth, Shire plc has seen a growth of -59.40%, and is looking to grow in the next year to 17.76%. More long term stats show that EPS growth has been 16.50% over the last five years and could be 14.30% 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 1.01%, with the 200-day simple moving average coming to 4.45%.

Since the IPO date for Shire plc on the 3/25/1998, Shire plc has seen performance year to date to be -6.11%. With Shire plc trading at 191.67, the dividend yield is 0.42%, and the EPS is 6.3.

So could Shire plc, be undervalued? Well as said before P/E is 30.44. The PEG is 2.13, P/S is 7.54 and the P/B is at 1.47. The P/cash is 81.67, 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 295.47. While shares float is 181.49. The float short is currently 0.74%, and short ratio is 0.6.

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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