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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 75.09 (-0.48% today). The market cap for Starwood Hotels & Resorts Worldwide Inc. is 12814.11, 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 43.58, and a forward P/E of 24.04. Average volume for Starwood Hotels & Resorts Worldwide Inc. is 1471.78 and so far today it is 978700.

Performance in the last year for Starwood Hotels & Resorts Worldwide Inc. has been 6.93%. 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 6.12%. 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 0.40%, with EPS growth quarter over quarter at -130.00%. The 20-day simple moving average is -3.06%, with the 200-day simple moving average coming to 2.62%.

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 9.52%. With Starwood Hotels & Resorts Worldwide Inc. trading at 75.09, the dividend yield is 2.00%, and the EPS is 1.72.

So could Starwood Hotels & Resorts Worldwide Inc., be undervalued? Well as said before P/E is 43.58. The PEG is 8.99, P/S is 2.44 and the P/B is at 72.2. The P/cash is 8.14, with P/free cash flow at 49.1.

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 13.00% and a profit margin of 1.50%.Payout ratio for Starwood Hotels & Resorts Worldwide Inc. is 314.90%. Return on assets come to 1.00% with return on investment coming to 15.20%.

Insider ownership for Starwood Hotels & Resorts Worldwide Inc., is at 0.10% and institutional ownership comes to 86.20%. Outstanding shares are at 170.65. While shares float is 168.7. The float short is currently 4.00%, and short ratio is 4.59.

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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