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Is this Large Market Cap Stock target price reasonable for The Ultimate Software Group, Inc. (NASDAQ:ULTI)?

The company in question is, The Ultimate Software Group, Inc. (NASDAQ:ULTI) currently with a stock price of 203.99 (-0.02% today). The market cap for The Ultimate Software Group, Inc. is 5982.16, and is in the sector Technology, and Internet Software & Services industry. The target price for The Ultimate Software Group, Inc. is 235.82. Currently The Ultimate Software Group, Inc. is trading with a P/E of 314.38, and a forward P/E of 49.74. Average volume for The Ultimate Software Group, Inc. is 200.12 and so far today it is 80103.

Performance in the last year for The Ultimate Software Group, Inc. has been 10.86%. For EPS growth, The Ultimate Software Group, Inc. has seen a growth of -48.00%, and is looking to grow in the next year to 24.61%. More long term stats show that EPS growth has been 48.20% over the last five years and could be 23.39% for the next five years. The Ultimate Software Group, Inc. has seen sales growth quarter over quarter at 26.70%, with EPS growth quarter over quarter at -54.60%. The 20-day simple moving average is -2.01%, with the 200-day simple moving average coming to 4.42%.

Since the IPO date for The Ultimate Software Group, Inc. on the 6/17/1998, The Ultimate Software Group, Inc. has seen performance year to date to be 4.36%. With The Ultimate Software Group, Inc. trading at 203.99, the dividend yield is *TBA, and the EPS is 0.65.

So could The Ultimate Software Group, Inc., be undervalued? Well as said before P/E is 314.38. The PEG is 13.44, P/S is 8.55 and the P/B is at 16.18. The P/cash is 61.04, with P/free cash flow at 105.51.

The Ultimate Software Group, Inc. ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 1.1. This is with long term debt/equity at 0.01, and total debt/equity at 0.03.

In terms of margins, The Ultimate Software Group, Inc. has a gross margin of 61.70%, an operating margin of 6.20% and a profit margin of 2.70%.Payout ratio for The Ultimate Software Group, Inc. is 0.00%. Return on assets come to 1.30% with return on investment coming to 6.70%.

Insider ownership for The Ultimate Software Group, Inc., is at 1.40% and institutional ownership comes to *TBA. Outstanding shares are at 29.32. While shares float is 27.29. The float short is currently 4.93%, and short ratio is 6.73.

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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