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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 78.67 (0.67% today). The market cap for Starwood Hotels & Resorts Worldwide Inc. is 13209.48, 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 45.66, and a forward P/E of 25.26. Average volume for Starwood Hotels & Resorts Worldwide Inc. is 1323.01 and so far today it is 922800.

Performance in the last year for Starwood Hotels & Resorts Worldwide Inc. has been 13.00%. 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 5.56%. 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 -54.20%, with EPS growth quarter over quarter at -113.90%. The 20-day simple moving average is 2.81%, with the 200-day simple moving average coming to 8.02%.

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 14.74%. With Starwood Hotels & Resorts Worldwide Inc. trading at 78.67, the dividend yield is 1.91%, and the EPS is 1.72.

So could Starwood Hotels & Resorts Worldwide Inc., be undervalued? Well as said before P/E is 45.66. The PEG is 9.41, P/S is 2.51 and the P/B is at 75.64. The P/cash is 8.39, with P/free cash flow at 50.61.

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 86.10%. Outstanding shares are at 167.91. While shares float is 167.91. The float short is currently 3.77%, and short ratio is 4.78.

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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Peter Clarke

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