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Is this Large Market Cap Stock target price reasonable for Starz (NASDAQ:STRZA)?

The company in question is, Starz (NASDAQ:STRZA) currently with a stock price of 30.59 (0.07% today). The market cap for Starz is 2977.52, and is in the sector Services, and Entertainment – Diversified industry. The target price for Starz is 32.91. Currently Starz is trading with a P/E of 15.09, and a forward P/E of 11.57. Average volume for Starz is 1129.23 and so far today it is 701190.

Performance in the last year for Starz has been -20.80%. For EPS growth, Starz has seen a growth of -8.70%, and is looking to grow in the next year to 16.03%. More long term stats show that EPS growth has been 12.40% over the last five years and could be 3.40% for the next five years. Starz has seen sales growth quarter over quarter at -3.60%, with EPS growth quarter over quarter at -7.90%. The 20-day simple moving average is -2.39%, with the 200-day simple moving average coming to 7.35%.

Since the IPO date for Starz on the 5/15/2006, Starz has seen performance year to date to be -8.75%. With Starz trading at 30.59, the dividend yield is *TBA, and the EPS is 2.03.

So could Starz, be undervalued? Well as said before P/E is 15.09. The PEG is 4.44, P/S is 1.79 and the P/B is at 12.58. The P/cash is 230.82, with P/free cash flow at 8.31.

Starz ability to deal with debt shows that the current ratio is 2.5, and the quick ratio is 2.5. This is with long term debt/equity at 4.56, and total debt/equity at 4.59.

In terms of margins, Starz has a gross margin of 46.50%, an operating margin of 22.60% and a profit margin of 12.60%.Payout ratio for Starz is 0.00%. Return on assets come to 12.90% with return on investment coming to 23.80%.

Insider ownership for Starz, is at 0.20% and institutional ownership comes to 87.00%. Outstanding shares are at 97.4. While shares float is 83.01. The float short is currently 7.72%, and short ratio is 5.68.

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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