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Time Warner Inc. (NYSE: TWX) – Is this large market cap stock undervalued?

Time Warner Inc. (NYSE: TWX), is firmly in the large market cap category with market cap of 58820.12. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Time Warner Inc. is 76 (with a change from open of 0.88%), this in conjunction with a target price of 88.03. Volume today has so far reached 1477788, with an average volume of about 3723.56. The GAP for this stock, is 0.65%.

The P/E ratio is 15.02, bringing the forward P/E to a value of 12.4. The current EPS for Time Warner Inc., is 4.98, with a EPS growth for this year coming to a value of 4.10%. Performance has been interesting with performance year to date coming to 17.68%.

Looking further into the growth statistics for Time Warner Inc., EPS is looking like it will grow 11.32% in the next year. Looking even further it is projected to be 14.42%. Quarter over quarter is -47.50% for EPS growth and for sales growth quarter over quarter it is -52.00%. Looking at past EPS growth statistics we see that for the past five years it has been 15.30%. Sales growth for the past five years has in fact been 0.90%.

Looking at the ownership, we see that the insider ownership is at 0.10% and institutional ownership is 82.70%. Shares outstanding is 785.84, while shares float is at a value of 776.94. Float short for Time Warner Inc. is 1.34% and the short ratio is 2.8.

In terms of debt, long term debt/equity is 1.02, while the total debt/equity comes to 1.02. The ability to meet these debts, means that the current ratio is 1.9, and the quick ratio is 1.6. The most recent gross margin is 43.60% and their operating margin is 25.30%. The profit margin is 14.50%.

Time Warner Inc. has seen returns on assets of 6.40%, and on investment, 11.00%. Return on equity is 17.00%. Price/Earnings to growth ratio is 1.04. Price/Sales ratio is at a value of 2.11, with Price/book ratio coming to 2.46 and Price/cash is 23.57, and finally Price/Free cash Flow is 24.8.

The simple moving averages are -2.89% and 5.47% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -6.08% and the 52 week low is 39.15%.

Time Warner Inc. has a dividend yield of 2.15%, with a current price of 76. The ability to pay this means the payout ratio is 29.70%. This is in an industry, Entertainment – Diversified, with equally high dividends from other companies in this sector, which it is Services. Time Warner Inc. is based in USA.

Performance in the Entertainment – Diversified industry means that Time Warner Inc. has seen performance for the past week of -2.80%, with performance for the month coming to -7.18%. Looking at the data for the quarter it is at a value of 3.96%, and for the half year the performance is 8.87%. Volatility for this week is 1.88% and for the month this is 1.24%.

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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