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Is this Large Market Cap Stock target price reasonable for WageWorks, Inc. (NYSE:WAGE)?

The company in question is, WageWorks, Inc. (NYSE:WAGE) currently with a stock price of 58.52 (-1.23% today). The market cap for WageWorks, Inc. is 2173.88, and is in the sector Services, and Management Services industry. The target price for WageWorks, Inc. is 68. Currently WageWorks, Inc. is trading with a P/E of 96.66, and a forward P/E of 35.63. Average volume for WageWorks, Inc. is 191.72 and so far today it is 62045.

Performance in the last year for WageWorks, Inc. has been 25.69%. For EPS growth, WageWorks, Inc. has seen a growth of 24.90%, and is looking to grow in the next year to 18.96%. More long term stats show that EPS growth has been 21.70% over the last five years and could be 15.00% for the next five years. WageWorks, Inc. has seen sales growth quarter over quarter at 5.90%, with EPS growth quarter over quarter at -20.20%. The 20-day simple moving average is -4.53%, with the 200-day simple moving average coming to 8.08%.

Since the IPO date for WageWorks, Inc. on the 05/11/2012, WageWorks, Inc. has seen performance year to date to be 30.59%. With WageWorks, Inc. trading at 58.52, the dividend yield is *TBA, and the EPS is 0.61.

So could WageWorks, Inc., be undervalued? Well as said before P/E is 96.66. The PEG is 6.44, P/S is 6.38 and the P/B is at 5.96. The P/cash is 3.82, with P/free cash flow at 30.49.

WageWorks, Inc. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 1.3. This is with long term debt/equity at 0.22, and total debt/equity at 0.22.

In terms of margins, WageWorks, Inc. has a gross margin of 66.30%, an operating margin of 11.20% and a profit margin of 6.60%.Payout ratio for WageWorks, Inc. is 0.00%. Return on assets come to 2.40% with return on investment coming to 6.00%.

Insider ownership for WageWorks, Inc., is at 0.50% and institutional ownership comes to 99.90%. Outstanding shares are at 36.69. While shares float is 36.42. The float short is currently 3.54%, and short ratio is 6.72.

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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