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Is this Large Market Cap Stock target price reasonable for Sibanye Gold Limited (NYSE:SBGL)?

The company in question is, Sibanye Gold Limited (NYSE:SBGL) currently with a stock price of 11.56 (0.78% today). The market cap for Sibanye Gold Limited is 2698.55, and is in the sector Basic Materials, and Gold industry. The target price for Sibanye Gold Limited is 20.04. Currently Sibanye Gold Limited is trading with a P/E of 42.17, and a forward P/E of 4.34. Average volume for Sibanye Gold Limited is 1296.04 and so far today it is 1003391.

Performance in the last year for Sibanye Gold Limited has been 66.04%. For EPS growth, Sibanye Gold Limited has seen a growth of -57.00%, and is looking to grow in the next year to 75.42%. More long term stats show that EPS growth has been 86.30% over the last five years and could be 58.70% for the next five years. Sibanye Gold Limited has seen sales growth quarter over quarter at 43.50%, with EPS growth quarter over quarter at 471.70%. The 20-day simple moving average is -26.36%, with the 200-day simple moving average coming to -14.73%.

Since the IPO date for Sibanye Gold Limited on the 02/11/2013, Sibanye Gold Limited has seen performance year to date to be 94.94%. With Sibanye Gold Limited trading at 11.56, the dividend yield is 4.36%, and the EPS is 0.27.

So could Sibanye Gold Limited, be undervalued? Well as said before P/E is 42.17. The PEG is 0.72, P/S is 1.38 and the P/B is at 2.52. The P/cash is 42.97, with P/free cash flow at 41.77.

Sibanye Gold Limited ability to deal with debt shows that the current ratio is 0.4, and the quick ratio is 0.4. This is with long term debt/equity at 0.22, and total debt/equity at 0.48.

In terms of margins, Sibanye Gold Limited has a gross margin of 19.80%, an operating margin of 12.90% and a profit margin of 3.20%.Payout ratio for Sibanye Gold Limited is 0.00%. Return on assets come to 3.80% with return on investment coming to 8.00%.

Insider ownership for Sibanye Gold Limited, is at *TBA and institutional ownership comes to 38.50%. Outstanding shares are at 235.27. While shares float is 181.08. The float short is currently 0.64%, and short ratio is 0.89.

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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Tony Dabbs

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