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Is this Large Market Cap Stock target price reasonable for Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT)?

The company in question is, Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT) currently with a stock price of 78.71 (-0.25% today). The market cap for Starwood Hotels & Resorts Worldwide Inc. is 13161.4, and is in the sector Services, and Lodging industry. The target price for Starwood Hotels & Resorts Worldwide Inc. is 79.31. Currently Starwood Hotels & Resorts Worldwide Inc. is trading with a P/E of 45.8, and a forward P/E of 25.4. Average volume for Starwood Hotels & Resorts Worldwide Inc. is 1343.59 and so far today it is 852639.

Performance in the last year for Starwood Hotels & Resorts Worldwide Inc. has been 6.15%. For EPS growth, Starwood Hotels & Resorts Worldwide Inc. has seen a growth of -16.80%, and is looking to grow in the next year to 4.68%. More long term stats show that EPS growth has been 12.00% over the last five years and could be 4.85% for the next five years. Starwood Hotels & Resorts Worldwide Inc. has seen sales growth quarter over quarter at -15.90%, with EPS growth quarter over quarter at -126.00%. The 20-day simple moving average is 4.36%, with the 200-day simple moving average coming to 8.50%.

Since the IPO date for Starwood Hotels & Resorts Worldwide Inc. on the 11/5/1987, Starwood Hotels & Resorts Worldwide Inc. has seen performance year to date to be 15.09%. With Starwood Hotels & Resorts Worldwide Inc. trading at 78.71, the dividend yield is 1.90%, and the EPS is 1.72.

So could Starwood Hotels & Resorts Worldwide Inc., be undervalued? Well as said before P/E is 45.8. The PEG is 9.44, P/S is 2.5 and the P/B is at 75.88. The P/cash is 8.36, with P/free cash flow at 50.43.

Starwood Hotels & Resorts Worldwide Inc. ability to deal with debt shows that the current ratio is 1.2, and the quick ratio is 1.2. This is with long term debt/equity at 13.68, and total debt/equity at 13.87.

In terms of margins, Starwood Hotels & Resorts Worldwide Inc. has a gross margin of 26.90%, an operating margin of 15.90% and a profit margin of 3.30%.Payout ratio for Starwood Hotels & Resorts Worldwide Inc. is 184.70%. Return on assets come to 2.20% with return on investment coming to 15.20%.

Insider ownership for Starwood Hotels & Resorts Worldwide Inc., is at 0.40% and institutional ownership comes to 95.30%. Outstanding shares are at 166.79. While shares float is 166.79. The float short is currently 3.88%, and short ratio is 4.82.

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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