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Is this Large Market Cap Stock target price reasonable for ULTA Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA)?

The company in question is, ULTA Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) currently with a stock price of 239.14 (-1.34% today). The market cap for ULTA Salon, Cosmetics & Fragrance, Inc. is 15423.28, and is in the sector Services, and Specialty Retail, Other industry. The target price for ULTA Salon, Cosmetics & Fragrance, Inc. is 292.2. Currently ULTA Salon, Cosmetics & Fragrance, Inc. is trading with a P/E of 42.69, and a forward P/E of 31.49. Average volume for ULTA Salon, Cosmetics & Fragrance, Inc. is 787.42 and so far today it is 47134.

Performance in the last year for ULTA Salon, Cosmetics & Fragrance, Inc. has been 46.85%. For EPS growth, ULTA Salon, Cosmetics & Fragrance, Inc. has seen a growth of 25.10%, and is looking to grow in the next year to 23.58%. More long term stats show that EPS growth has been 33.80% over the last five years and could be 20.40% for the next five years. ULTA Salon, Cosmetics & Fragrance, Inc. has seen sales growth quarter over quarter at 21.90%, with EPS growth quarter over quarter at 24.40%. The 20-day simple moving average is -6.95%, with the 200-day simple moving average coming to 14.07%.

Since the IPO date for ULTA Salon, Cosmetics & Fragrance, Inc. on the 10/25/2007, ULTA Salon, Cosmetics & Fragrance, Inc. has seen performance year to date to be 31.02%. With ULTA Salon, Cosmetics & Fragrance, Inc. trading at 239.14, the dividend yield is *TBA, and the EPS is 5.68.

So could ULTA Salon, Cosmetics & Fragrance, Inc., be undervalued? Well as said before P/E is 42.69. The PEG is 2.09, P/S is 3.57 and the P/B is at 10.88. The P/cash is 50.72, with P/free cash flow at 97.43.

ULTA Salon, Cosmetics & Fragrance, Inc. ability to deal with debt shows that the current ratio is 2.8, and the quick ratio is 0.9. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, ULTA Salon, Cosmetics & Fragrance, Inc. has a gross margin of 35.90%, an operating margin of 13.20% and a profit margin of 8.30%.Payout ratio for ULTA Salon, Cosmetics & Fragrance, Inc. is 0.00%. Return on assets come to 16.00% with return on investment coming to 22.10%.

Insider ownership for ULTA Salon, Cosmetics & Fragrance, Inc., is at 1.20% and institutional ownership comes to 89.10%. Outstanding shares are at 63.63. While shares float is 58.23. The float short is currently 3.02%, and short ratio is 2.23.

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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