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Is this Large Market Cap Stock target price reasonable for WGL Holdings Inc. (NYSE:WGL)?

The company in question is, WGL Holdings Inc. (NYSE:WGL) currently with a stock price of 60.59 (0.51% today). The market cap for WGL Holdings Inc. is 3093.57, and is in the sector Utilities, and Gas Utilities industry. The target price for WGL Holdings Inc. is 65.67. Currently WGL Holdings Inc. is trading with a P/E of 16.99, and a forward P/E of 18.53. Average volume for WGL Holdings Inc. is 226.32 and so far today it is 54705.

Performance in the last year for WGL Holdings Inc. has been 5.51%. For EPS growth, WGL Holdings Inc. has seen a growth of 28.10%, and is looking to grow in the next year to 2.72%. More long term stats show that EPS growth has been 3.90% over the last five years and could be 8.00% for the next five years. WGL Holdings Inc. has seen sales growth quarter over quarter at -0.10%, with EPS growth quarter over quarter at 112.60%. The 20-day simple moving average is -3.67%, with the 200-day simple moving average coming to -7.82%.

Since the IPO date for WGL Holdings Inc. on the 6/22/1987, WGL Holdings Inc. has seen performance year to date to be -1.44%. With WGL Holdings Inc. trading at 60.59, the dividend yield is 3.23%, and the EPS is 3.55.

So could WGL Holdings Inc., be undervalued? Well as said before P/E is 16.99. The PEG is 2.12, P/S is 1.31 and the P/B is at 2.16. The P/cash is 187.49, with P/free cash flow at *TBA.

WGL Holdings Inc. ability to deal with debt shows that the current ratio is 0.8, and the quick ratio is 0.6. This is with long term debt/equity at 0.85, and total debt/equity at 1.1.

In terms of margins, WGL Holdings Inc. has a gross margin of 42.10%, an operating margin of 13.50% and a profit margin of 7.60%.Payout ratio for WGL Holdings Inc. is 53.30%. Return on assets come to 3.20% with return on investment coming to 7.00%.

Insider ownership for WGL Holdings Inc., is at 0.40% and institutional ownership comes to 69.80%. Outstanding shares are at 51.32. While shares float is 50.68. The float short is currently 2.63%, and short ratio is 5.89.

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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Tony Dabbs

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