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Is this Large Market Cap Stock target price reasonable for Western Gas Equity Partners, LP (NYSE:WGP)?

The company in question is, Western Gas Equity Partners, LP (NYSE:WGP) currently with a stock price of 42.69 (1.09% today). The market cap for Western Gas Equity Partners, LP is 9260.62, and is in the sector Basic Materials, and Oil & Gas Pipelines industry. The target price for Western Gas Equity Partners, LP is 43. Currently Western Gas Equity Partners, LP is trading with a P/E of 42.4, and a forward P/E of 22.74. Average volume for Western Gas Equity Partners, LP is 281.98 and so far today it is 52730.

Performance in the last year for Western Gas Equity Partners, LP has been -3.81%. For EPS growth, Western Gas Equity Partners, LP has seen a growth of -61.40%, and is looking to grow in the next year to 30.13%. More long term stats show that EPS growth has been 36.10% over the last five years and could be 34.11% for the next five years. Western Gas Equity Partners, LP has seen sales growth quarter over quarter at -8.00%, with EPS growth quarter over quarter at 28.90%. The 20-day simple moving average is 11.02%, with the 200-day simple moving average coming to 20.97%.

Since the IPO date for Western Gas Equity Partners, LP on the 12/10/2012, Western Gas Equity Partners, LP has seen performance year to date to be 20.67%. With Western Gas Equity Partners, LP trading at 42.69, the dividend yield is 4.10%, and the EPS is 1.

So could Western Gas Equity Partners, LP, be undervalued? Well as said before P/E is 42.4. The PEG is 1.24, P/S is 5.91 and the P/B is at 8.78. The P/cash is 57.99, with P/free cash flow at 331.92.

Western Gas Equity Partners, LP ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1.6. This is with long term debt/equity at 2.81, and total debt/equity at 0.

In terms of margins, Western Gas Equity Partners, LP has a gross margin of 73.00%, an operating margin of 24.20% and a profit margin of 13.90%.Payout ratio for Western Gas Equity Partners, LP is 165.00%. Return on assets come to 3.00% with return on investment coming to 0.70%.

Insider ownership for Western Gas Equity Partners, LP, is at 0.10% and institutional ownership comes to 17.60%. Outstanding shares are at 219.29. While shares float is 39.9. The float short is currently 1.45%, and short ratio is 2.05.

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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Mark Hines

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