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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 77.92 (0.23% today). The market cap for Time Warner Inc. is 61095.09, and is in the sector Services, and Entertainment – Diversified industry. The target price for Time Warner Inc. is 85.38. Currently Time Warner Inc. is trading with a P/E of 15.7, and a forward P/E of 12.9. Average volume for Time Warner Inc. is 3874.9 and so far today it is 997085.

Performance in the last year for Time Warner Inc. has been -10.48%. For EPS growth, Time Warner Inc. has seen a growth of 3.80%, and is looking to grow in the next year to 11.92%. More long term stats show that EPS growth has been 15.20% over the last five years and could be 14.08% for the next five years. Time Warner Inc. has seen sales growth quarter over quarter at 2.50%, with EPS growth quarter over quarter at 32.70%. The 20-day simple moving average is 4.84%, with the 200-day simple moving average coming to 10.05%.

Since the IPO date for Time Warner Inc. on the 3/19/1992, Time Warner Inc. has seen performance year to date to be 21.60%. With Time Warner Inc. trading at 77.92, the dividend yield is 2.07%, and the EPS is 4.95.

So could Time Warner Inc., be undervalued? Well as said before P/E is 15.7. The PEG is 1.11, P/S is 2.16 and the P/B is at 2.62. The P/cash is 39.67, with P/free cash flow at *TBA.

Time Warner Inc. ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1.4. This is with long term debt/equity at 0.99, and total debt/equity at 0.99.

In terms of margins, Time Warner Inc. has a gross margin of 43.20%, an operating margin of *TBA and a profit margin of *TBA.Payout ratio for Time Warner Inc. is *TBA. Return on assets come to *TBA with return on investment coming to 11.00%.

Insider ownership for Time Warner Inc., is at 0.10% and institutional ownership comes to 83.00%. Outstanding shares are at 785.89. While shares float is 785.41. The float short is currently 1.24%, and short ratio is 2.51.

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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