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Is this Large Market Cap Stock target price reasonable for The Priceline Group Inc. (NASDAQ:PCLN)?

The company in question is, The Priceline Group Inc. (NASDAQ:PCLN) currently with a stock price of 1316.31 (-0.62% today). The market cap for The Priceline Group Inc. is 66001.33, and is in the sector Services, and Business Services industry. The target price for The Priceline Group Inc. is 1472.05. Currently The Priceline Group Inc. is trading with a P/E of 26.08, and a forward P/E of 16.88. Average volume for The Priceline Group Inc. is 663.22 and so far today it is 287239.

Performance in the last year for The Priceline Group Inc. has been 11.67%. For EPS growth, The Priceline Group Inc. has seen a growth of 8.30%, and is looking to grow in the next year to 17.35%. More long term stats show that EPS growth has been 36.70% over the last five years and could be 15.57% for the next five years. The Priceline Group Inc. has seen sales growth quarter over quarter at 16.70%, with EPS growth quarter over quarter at 17.40%. The 20-day simple moving average is 1.11%, with the 200-day simple moving average coming to 3.06%.

Since the IPO date for The Priceline Group Inc. on the 3/31/1999, The Priceline Group Inc. has seen performance year to date to be 3.89%. With The Priceline Group Inc. trading at 1316.31, the dividend yield is *TBA, and the EPS is 50.79.

So could The Priceline Group Inc., be undervalued? Well as said before P/E is 26.08. The PEG is 1.67, P/S is 6.92 and the P/B is at 7.26. The P/cash is 19.51, with P/free cash flow at 21.7.

The Priceline Group Inc. ability to deal with debt shows that the current ratio is 2.4, and the quick ratio is 2.4. This is with long term debt/equity at 0.7, and total debt/equity at 0.

In terms of margins, The Priceline Group Inc. has a gross margin of 93.80%, an operating margin of 34.90% and a profit margin of 27.20%.Payout ratio for The Priceline Group Inc. is 0.00%. Return on assets come to 14.90% with return on investment coming to 17.90%.

Insider ownership for The Priceline Group Inc., is at 0.40% and institutional ownership comes to 95.50%. Outstanding shares are at 49.83. While shares float is 49.46. The float short is currently 2.72%, and short ratio is 2.03.

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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