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Is this Large Market Cap Stock target price reasonable for The Western Union Company (NYSE:WU)?

The company in question is, The Western Union Company (NYSE:WU) currently with a stock price of 20.14 (1.10% today). The market cap for The Western Union Company is 9706.22, and is in the sector Financial, and Credit Services industry. The target price for The Western Union Company is 19.43. Currently The Western Union Company is trading with a P/E of 12.03, and a forward P/E of 11.49. Average volume for The Western Union Company is 3348.96 and so far today it is 1262889.

Performance in the last year for The Western Union Company has been 10.06%. For EPS growth, The Western Union Company has seen a growth of 2.10%, and is looking to grow in the next year to 4.97%. More long term stats show that EPS growth has been 3.60% over the last five years and could be 7.64% for the next five years. The Western Union Company has seen sales growth quarter over quarter at -0.60%, with EPS growth quarter over quarter at 14.50%. The 20-day simple moving average is -2.72%, with the 200-day simple moving average coming to 5.40%.

Since the IPO date for The Western Union Company on the 10/02/2006, The Western Union Company has seen performance year to date to be 14.00%. With The Western Union Company trading at 20.14, the dividend yield is 3.21%, and the EPS is 1.66.

So could The Western Union Company, be undervalued? Well as said before P/E is 12.03. The PEG is 1.57, P/S is 1.78 and the P/B is at 7.43. The P/cash is 8.35, with P/free cash flow at 15.35.

The Western Union Company ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 2.46, and total debt/equity at 2.46.

In terms of margins, The Western Union Company has a gross margin of 40.80%, an operating margin of 20.30% and a profit margin of 15.30%.Payout ratio for The Western Union Company is 37.80%. Return on assets come to 8.80% with return on investment coming to 21.80%.

Insider ownership for The Western Union Company, is at 0.20% and institutional ownership comes to *TBA. Outstanding shares are at 487.26. While shares float is 486.82. The float short is currently 12.82%, and short ratio is 18.64.

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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Peter Clarke

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