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Is this Large Market Cap Stock target price reasonable for Viacom, Inc. (NASDAQ:VIAB)?

The company in question is, Viacom, Inc. (NASDAQ:VIAB) currently with a stock price of 42.8 (-2.01% today). The market cap for Viacom, Inc. is 17546.69, and is in the sector Services, and Entertainment – Diversified industry. The target price for Viacom, Inc. is 47.53. Currently Viacom, Inc. is trading with a P/E of 7.84, and a forward P/E of 9.3. Average volume for Viacom, Inc. is 3516.71 and so far today it is 1104700.

Performance in the last year for Viacom, Inc. has been 2.88%. For EPS growth, Viacom, Inc. has seen a growth of -12.90%, and is looking to grow in the next year to 10.26%. More long term stats show that EPS growth has been 19.70% over the last five years and could be 4.62% for the next five years. Viacom, Inc. has seen sales growth quarter over quarter at -2.50%, with EPS growth quarter over quarter at 679.00%. The 20-day simple moving average is -1.94%, with the 200-day simple moving average coming to 1.95%.

Since the IPO date for Viacom, Inc. on the 12/5/2005, Viacom, Inc. has seen performance year to date to be 8.25%. With Viacom, Inc. trading at 42.8, the dividend yield is 3.66%, and the EPS is 5.57.

So could Viacom, Inc., be undervalued? Well as said before P/E is 7.84. The PEG is 1.7, P/S is 1.35 and the P/B is at 4.45. The P/cash is 36.56, with P/free cash flow at 14.92.

Viacom, Inc. ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 0.9. This is with long term debt/equity at 2.96, and total debt/equity at 3.22.

In terms of margins, Viacom, Inc. has a gross margin of 50.50%, an operating margin of 27.30% and a profit margin of 17.10%.Payout ratio for Viacom, Inc. is 28.50%. Return on assets come to 10.00% with return on investment coming to 16.40%.

Insider ownership for Viacom, Inc., is at 0.80% and institutional ownership comes to 89.60%. Outstanding shares are at 401.71. While shares float is 353.37. The float short is currently 4.42%, and short ratio is 4.44.

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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