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Is this Large Market Cap Stock target price reasonable for Telefonica Brasil S.A. (NYSE:VIV)?

The company in question is, Telefonica Brasil S.A. (NYSE:VIV) currently with a stock price of 15.6 (2.03% today). The market cap for Telefonica Brasil S.A. is 24374.06, and is in the sector Technology, and Wireless Communications industry. The target price for Telefonica Brasil S.A. is 14.21. Currently Telefonica Brasil S.A. is trading with a P/E of 22.07, and a forward P/E of 15.69. Average volume for Telefonica Brasil S.A. is 2086.42 and so far today it is 1313000.

Performance in the last year for Telefonica Brasil S.A. has been 55.99%. For EPS growth, Telefonica Brasil S.A. has seen a growth of -47.80%, and is looking to grow in the next year to 34.69%. More long term stats show that EPS growth has been -13.50% over the last five years and could be 2.10% for the next five years. Telefonica Brasil S.A. has seen sales growth quarter over quarter at 5.50%, with EPS growth quarter over quarter at -30.70%. The 20-day simple moving average is 8.67%, with the 200-day simple moving average coming to 37.17%.

Since the IPO date for Telefonica Brasil S.A. on the 11/16/1998, Telefonica Brasil S.A. has seen performance year to date to be 79.24%. With Telefonica Brasil S.A. trading at 15.6, the dividend yield is 1.79%, and the EPS is 0.71.

So could Telefonica Brasil S.A., be undervalued? Well as said before P/E is 22.07. The PEG is 10.51, P/S is 1.88 and the P/B is at 1.26. The P/cash is 13.99, with P/free cash flow at 28.57.

Telefonica Brasil S.A. ability to deal with debt shows that the current ratio is 1, and the quick ratio is 1. This is with long term debt/equity at 0.1, and total debt/equity at 0.13.

In terms of margins, Telefonica Brasil S.A. has a gross margin of 49.40%, an operating margin of 14.10% and a profit margin of 9.20%.Payout ratio for Telefonica Brasil S.A. is 34.20%. Return on assets come to 3.80% with return on investment coming to 5.40%.

Insider ownership for Telefonica Brasil S.A., is at 88.00% and institutional ownership comes to 16.40%. Outstanding shares are at 1562.44. While shares float is 670.97. The float short is currently 1.49%, and short ratio is 4.79.

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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Stephen Butters

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