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Is this Large Market Cap Stock target price reasonable for Time Warner Inc. (NYSE:TWX)?

The company in question is, Time Warner Inc. (NYSE:TWX) currently with a stock price of 75.71 (1.15% today). The market cap for Time Warner Inc. is 59495.95, and is in the sector Services, and Entertainment – Diversified industry. The target price for Time Warner Inc. is 88.03. Currently Time Warner Inc. is trading with a P/E of 15.19, and a forward P/E of 12.54. Average volume for Time Warner Inc. is 3734.16 and so far today it is 4297900.

Performance in the last year for Time Warner Inc. has been 11.09%. For EPS growth, Time Warner Inc. has seen a growth of 4.10%, and is looking to grow in the next year to 11.32%. More long term stats show that EPS growth has been 15.30% over the last five years and could be 14.42% for the next five years. Time Warner Inc. has seen sales growth quarter over quarter at -52.00%, with EPS growth quarter over quarter at -47.50%. The 20-day simple moving average is -3.26%, with the 200-day simple moving average coming to 5.07%.

Since the IPO date for Time Warner Inc. on the 3/19/1992, Time Warner Inc. has seen performance year to date to be 19.03%. With Time Warner Inc. trading at 75.71, the dividend yield is 2.13%, and the EPS is 4.98.

So could Time Warner Inc., be undervalued? Well as said before P/E is 15.19. The PEG is 1.05, P/S is 2.13 and the P/B is at 2.49. The P/cash is 23.84, with P/free cash flow at 25.08.

Time Warner Inc. ability to deal with debt shows that the current ratio is 1.9, and the quick ratio is 1.6. This is with long term debt/equity at 1.02, and total debt/equity at 1.02.

In terms of margins, Time Warner Inc. has a gross margin of 43.60%, an operating margin of 25.30% and a profit margin of 14.50%.Payout ratio for Time Warner Inc. is 29.70%. Return on assets come to 6.40% with return on investment coming to 11.00%.

Insider ownership for Time Warner Inc., is at 0.10% and institutional ownership comes to 82.70%. Outstanding shares are at 785.84. While shares float is 776.94. The float short is currently 1.34%, and short ratio is 2.79.

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.

About the author

Mark Hines

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