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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 77.32 (0.48% today). The market cap for Starwood Hotels & Resorts Worldwide Inc. is 13076.11, and is in the sector Services, and Lodging industry. The target price for Starwood Hotels & Resorts Worldwide Inc. is 81. Currently Starwood Hotels & Resorts Worldwide Inc. is trading with a P/E of 27.16, and a forward P/E of 24.63. Average volume for Starwood Hotels & Resorts Worldwide Inc. is 1887.51 and so far today it is 213107.

Performance in the last year for Starwood Hotels & Resorts Worldwide Inc. has been -7.41%. 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 3.82%. 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 -0.80%, with EPS growth quarter over quarter at -7.50%. The 20-day simple moving average is 3.48%, with the 200-day simple moving average coming to 7.38%.

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 12.24%. With Starwood Hotels & Resorts Worldwide Inc. trading at 77.32, the dividend yield is 1.95%, and the EPS is 2.83.

So could Starwood Hotels & Resorts Worldwide Inc., be undervalued? Well as said before P/E is 27.16. The PEG is 5.6, P/S is 2.27 and the P/B is at 9.56. The P/cash is 11.08, with P/free cash flow at 34.87.

Starwood Hotels & Resorts Worldwide Inc. ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 1. This is with long term debt/equity at 1.81, and total debt/equity at 1.87.

In terms of margins, Starwood Hotels & Resorts Worldwide Inc. has a gross margin of 26.30%, an operating margin of 12.80% and a profit margin of 8.30%.Payout ratio for Starwood Hotels & Resorts Worldwide Inc. is 52.60%. Return on assets come to 5.80% with return on investment coming to 15.40%.

Insider ownership for Starwood Hotels & Resorts Worldwide Inc., is at 0.40% and institutional ownership comes to 95.30%. Outstanding shares are at 169.93. While shares float is 96.29. The float short is currently 6.73%, and short ratio is 3.43.

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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Stephen Butters

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