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Is this Large Market Cap Stock target price reasonable for Telecom Italia S.p.A. (NYSE:TI)?

The company in question is, Telecom Italia S.p.A. (NYSE:TI) currently with a stock price of 8.51 (-4.49% today). The market cap for Telecom Italia S.p.A. is 16841.06, and is in the sector Technology, and Diversified Communication Services industry. The target price for Telecom Italia S.p.A. is 17.84. Currently Telecom Italia S.p.A. is trading with a P/E of 28.56, and a forward P/E of 10.91. Average volume for Telecom Italia S.p.A. is 179.99 and so far today it is 14859.

Performance in the last year for Telecom Italia S.p.A. has been -27.74%. For EPS growth, Telecom Italia S.p.A. has seen a growth of -184.30%, and is looking to grow in the next year to 97.82%. More long term stats show that EPS growth has been -17.10% over the last five years and could be 6.70% for the next five years. Telecom Italia S.p.A. has seen sales growth quarter over quarter at 80.20%, with EPS growth quarter over quarter at 592.10%. The 20-day simple moving average is 1.81%, with the 200-day simple moving average coming to -14.63%.

Since the IPO date for Telecom Italia S.p.A. on the 10/9/2003, Telecom Italia S.p.A. has seen performance year to date to be -29.57%. With Telecom Italia S.p.A. trading at 8.51, the dividend yield is *TBA, and the EPS is 0.31.

So could Telecom Italia S.p.A., be undervalued? Well as said before P/E is 28.56. The PEG is 4.26, P/S is 0.8 and the P/B is at 0.88. The P/cash is 3.71, with P/free cash flow at *TBA.

Telecom Italia S.p.A. ability to deal with debt shows that the current ratio is 0.9, and the quick ratio is 0.8. This is with long term debt/equity at 1.51, and total debt/equity at 1.72.

In terms of margins, Telecom Italia S.p.A. has a gross margin of 84.20%, an operating margin of 13.60% and a profit margin of 5.40%.Payout ratio for Telecom Italia S.p.A. is 0.00%. Return on assets come to 1.50% with return on investment coming to 4.90%.

Insider ownership for Telecom Italia S.p.A., is at 52.10% and institutional ownership comes to 1.00%. Outstanding shares are at 1890.13. While shares float is 1591.53. The float short is currently 0.02%, and short ratio is 1.88.

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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