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Is this Large Market Cap Stock target price reasonable for Vale S.A. (NYSE:VALE)?

The company in question is, Vale S.A. (NYSE:VALE) currently with a stock price of 5.89 (-1.34% today). The market cap for Vale S.A. is 30860.78, and is in the sector Basic Materials, and Industrial Metals & Minerals industry. The target price for Vale S.A. is 4.64. Currently Vale S.A. is trading with a P/E of *TBA, and a forward P/E of 23.05. Average volume for Vale S.A. is 25676.05 and so far today it is 11217176.

Performance in the last year for Vale S.A. has been 19.84%. For EPS growth, Vale S.A. has seen a growth of 122.10%, and is looking to grow in the next year to -57.40%. More long term stats show that EPS growth has been -35.70% over the last five years and could be 77.40% for the next five years. Vale S.A. has seen sales growth quarter over quarter at -4.90%, with EPS growth quarter over quarter at -34.00%. The 20-day simple moving average is 13.10%, with the 200-day simple moving average coming to 43.11%.

Since the IPO date for Vale S.A. on the 3/21/2002, Vale S.A. has seen performance year to date to be 81.46%. With Vale S.A. trading at 5.89, the dividend yield is *TBA, and the EPS is -1.51.

So could Vale S.A., be undervalued? Well as said before P/E is *TBA. The PEG is *TBA, P/S is 1.25 and the P/B is at 0.78. The P/cash is 7.17, with P/free cash flow at *TBA.

Vale S.A. ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1.2. This is with long term debt/equity at 0.74, and total debt/equity at 0.82.

In terms of margins, Vale S.A. has a gross margin of 22.40%, an operating margin of *TBA and a profit margin of *TBA.Payout ratio for Vale S.A. is *TBA. Return on assets come to -13.30% with return on investment coming to -13.10%.

Insider ownership for Vale S.A., is at 38.50% and institutional ownership comes to 15.00%. Outstanding shares are at 5169.31. While shares float is 3021.89. The float short is currently 5.08%, and short ratio is 5.97.

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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