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Is this Large Market Cap Stock target price reasonable for The Dow Chemical Company (NYSE:DOW)?

The company in question is, The Dow Chemical Company (NYSE:DOW) currently with a stock price of 53 (-0.71% today). The market cap for The Dow Chemical Company is 59196.23, and is in the sector Basic Materials, and Chemicals – Major Diversified industry. The target price for The Dow Chemical Company is 60.33. Currently The Dow Chemical Company is trading with a P/E of 8.05, and a forward P/E of 13.14. Average volume for The Dow Chemical Company is 5496.57 and so far today it is 4763100.

Performance in the last year for The Dow Chemical Company has been 15.36%. For EPS growth, The Dow Chemical Company has seen a growth of 104.80%, and is looking to grow in the next year to 14.09%. More long term stats show that EPS growth has been 27.80% over the last five years and could be 8.08% for the next five years. The Dow Chemical Company has seen sales growth quarter over quarter at -7.40%, with EPS growth quarter over quarter at 181.30%. The 20-day simple moving average is 0.46%, with the 200-day simple moving average coming to 6.00%.

Since the IPO date for The Dow Chemical Company on the 6/1/1972, The Dow Chemical Company has seen performance year to date to be 5.77%. With The Dow Chemical Company trading at 53, the dividend yield is 3.47%, and the EPS is 6.59.

So could The Dow Chemical Company, be undervalued? Well as said before P/E is 8.05. The PEG is 1, P/S is 1.28 and the P/B is at 2.36. The P/cash is 8.1, with P/free cash flow at 51.74.

The Dow Chemical Company ability to deal with debt shows that the current ratio is 2, and the quick ratio is 1.4. This is with long term debt/equity at 0.84, and total debt/equity at 0.86.

In terms of margins, The Dow Chemical Company has a gross margin of 23.30%, an operating margin of 23.10% and a profit margin of 17.50%.Payout ratio for The Dow Chemical Company is 24.90%. Return on assets come to 11.20% with return on investment coming to 21.80%.

Insider ownership for The Dow Chemical Company, is at 0.10% and institutional ownership comes to 68.80%. Outstanding shares are at 1116.91. While shares float is 1116.91. The float short is currently 3.07%, and short ratio is 6.25.

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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