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Is this Large Market Cap Stock target price reasonable for Syntel, Inc. (NASDAQ:SYNT)?

The company in question is, Syntel, Inc. (NASDAQ:SYNT) currently with a stock price of 26.51 (0.08% today). The market cap for Syntel, Inc. is 2263.84, and is in the sector Technology, and Information Technology Services industry. The target price for Syntel, Inc. is 38.57. Currently Syntel, Inc. is trading with a P/E of 8.46, and a forward P/E of 10.36. Average volume for Syntel, Inc. is 537.07 and so far today it is 206061.

Performance in the last year for Syntel, Inc. has been -10.91%. For EPS growth, Syntel, Inc. has seen a growth of 0.90%, and is looking to grow in the next year to 483.60%. More long term stats show that EPS growth has been 17.10% over the last five years and could be 10.67% for the next five years. Syntel, Inc. has seen sales growth quarter over quarter at 2.60%, with EPS growth quarter over quarter at -3.10%. The 20-day simple moving average is -6.18%, with the 200-day simple moving average coming to -9.18%.

Since the IPO date for Syntel, Inc. on the 08/12/1997, Syntel, Inc. has seen performance year to date to be -9.69%. With Syntel, Inc. trading at 26.51, the dividend yield is *TBA, and the EPS is 3.13.

So could Syntel, Inc., be undervalued? Well as said before P/E is 8.46. The PEG is 0.79, P/S is 2.27 and the P/B is at 1.77. The P/cash is 2.06, with P/free cash flow at 9.29.

Syntel, Inc. ability to deal with debt shows that the current ratio is 10.5, and the quick ratio is 10.2. This is with long term debt/equity at 0.07, and total debt/equity at 0.08.

In terms of margins, Syntel, Inc. has a gross margin of 39.70%, an operating margin of 30.50% and a profit margin of 26.50%.Payout ratio for Syntel, Inc. is 0.00%. Return on assets come to 18.40% with return on investment coming to 16.20%.

Insider ownership for Syntel, Inc., is at 0.40% and institutional ownership comes to 38.10%. Outstanding shares are at 85.46. While shares float is 32.1. The float short is currently 6.34%, and short ratio is 3.79.

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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