Stock Updates

Is this Large Market Cap Stock target price reasonable for WebMD Health Corp. (NASDAQ:WBMD)?

The company in question is, WebMD Health Corp. (NASDAQ:WBMD) currently with a stock price of 50.63 (-0.96% today). The market cap for WebMD Health Corp. is 2003.9, and is in the sector Technology, and Healthcare Information Services industry. The target price for WebMD Health Corp. is 67.38. Currently WebMD Health Corp. is trading with a P/E of 31.48, and a forward P/E of 25.59. Average volume for WebMD Health Corp. is 576.26 and so far today it is 94600.

Performance in the last year for WebMD Health Corp. has been 19.72%. For EPS growth, WebMD Health Corp. has seen a growth of 65.30%, and is looking to grow in the next year to 9.54%. More long term stats show that EPS growth has been 11.70% over the last five years and could be 10.00% for the next five years. WebMD Health Corp. has seen sales growth quarter over quarter at 13.00%, with EPS growth quarter over quarter at 48.50%. The 20-day simple moving average is -2.43%, with the 200-day simple moving average coming to -10.83%.

Since the IPO date for WebMD Health Corp. on the 9/29/2005, WebMD Health Corp. has seen performance year to date to be 5.84%. With WebMD Health Corp. trading at 50.63, the dividend yield is *TBA, and the EPS is 1.62.

So could WebMD Health Corp., be undervalued? Well as said before P/E is 31.48. The PEG is 3.15, P/S is 2.99 and the P/B is at 7.28. The P/cash is 1.97, with P/free cash flow at 21.88.

WebMD Health Corp. ability to deal with debt shows that the current ratio is 6.5, and the quick ratio is 6.5. This is with long term debt/equity at 3.9, and total debt/equity at 0.

In terms of margins, WebMD Health Corp. has a gross margin of 61.60%, an operating margin of 21.50% and a profit margin of 11.10%.Payout ratio for WebMD Health Corp. is 0.00%. Return on assets come to 6.10% with return on investment coming to 9.20%.

Insider ownership for WebMD Health Corp., is at 1.20% and institutional ownership comes to 86.30%. Outstanding shares are at 39.2. While shares float is 37.98. The float short is currently 15.37%, and short ratio is 10.13.

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

Peter Clarke

Leave a Comment