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Is this Large Market Cap Stock target price reasonable for The Valspar Corporation (NYSE:VAL)?

The company in question is, The Valspar Corporation (NYSE:VAL) currently with a stock price of 105.1 (-0.28% today). The market cap for The Valspar Corporation is 8369.81, and is in the sector Basic Materials, and Specialty Chemicals industry. The target price for The Valspar Corporation is 108.67. Currently The Valspar Corporation is trading with a P/E of 24.26, and a forward P/E of 19.75. Average volume for The Valspar Corporation is 324.05 and so far today it is 117374.

Performance in the last year for The Valspar Corporation has been 37.66%. For EPS growth, The Valspar Corporation has seen a growth of 20.70%, and is looking to grow in the next year to 8.21%. More long term stats show that EPS growth has been 17.10% over the last five years and could be 7.34% for the next five years. The Valspar Corporation has seen sales growth quarter over quarter at -0.60%, with EPS growth quarter over quarter at 14.90%. The 20-day simple moving average is -0.52%, with the 200-day simple moving average coming to 6.51%.

Since the IPO date for The Valspar Corporation on the 3/17/1992, The Valspar Corporation has seen performance year to date to be 28.38%. With The Valspar Corporation trading at 105.1, the dividend yield is 1.25%, and the EPS is 4.34.

So could The Valspar Corporation, be undervalued? Well as said before P/E is 24.26. The PEG is 3.31, P/S is 1.98 and the P/B is at 8.01. The P/cash is 49.18, with P/free cash flow at 28.52.

The Valspar Corporation ability to deal with debt shows that the current ratio is 1.2, and the quick ratio is 0.8. This is with long term debt/equity at 1.5, and total debt/equity at 1.87.

In terms of margins, The Valspar Corporation has a gross margin of 37.10%, an operating margin of 13.30% and a profit margin of 8.30%.Payout ratio for The Valspar Corporation is 29.00%. Return on assets come to 8.20% with return on investment coming to 16.70%.

Insider ownership for The Valspar Corporation, is at 1.10% and institutional ownership comes to 73.20%. Outstanding shares are at 79.41. While shares float is 73.22. The float short is currently 2.92%, and short ratio is 6.6.

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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