Below are the valuation targets for Brookfield Infrastructure Partners (BIP) for the next 10 years.
Our valuation targets for Brookfield Infrastructure Partners (BIP) in 2019 are:
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$52.56 (overvalued)
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$41.55 (fair value)
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$30.53 (undervalued)
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$20.52 (extreme undervalue)
The valuation targets for Brookfield Infrastructure Partners (BIP) are based on a dividend growth rate of 6.50% which is derived from the lowest calculated growth rate as indicated in Value Line Investment Survey dated October 12, 2018 and applied to Edson Gould’s Altimeter. A graphical representation of the overvalued, fair value, and undervalued levels are below.
The above Altimeter translates into the following undervalued and overvalued ranges since 2008:
10-Year Targets
| Year | Undervalued | Fair Value | Overvalued | Extreme Undervalue |
| 2018 | $28.67 | $39.01 | $49.35 | $19.27 |
| 2019 | $30.53 | $41.55 | $52.56 | $20.52 |
| 2020 | $32.52 | $44.25 | $55.97 | $21.86 |
| 2021 | $34.63 | $47.12 | $59.61 | $23.28 |
| 2022 | $36.88 | $50.19 | $63.49 | $24.79 |
| 2023 | $39.28 | $53.45 | $67.61 | $26.40 |
| 2024 | $41.83 | $56.92 | $72.01 | $28.12 |
| 2025 | $44.55 | $60.62 | $76.69 | $29.95 |
| 2026 | $47.45 | $64.56 | $81.67 | $31.89 |
| 2027 | $50.53 | $68.76 | $86.98 | $33.96 |
| 2028 | $53.82 | $73.23 | $92.64 | $36.17 |
| 2029 | $57.32 | $77.99 | $98.66 | $38.52 |
| 2030 | $61.04 | $83.06 | $105.07 | $41.03 |
| 2031 | $65.01 | $88.45 | $111.90 | $43.69 |
Observations
Based on our work, Brookfield Infrastructure Partners (BIP) has an expected price range of $34.63-$67.61 by 2021-2023. Value Line Investment Survey has targets of $40 to $55 in the 2021-2023 period.
Last updated: January 5, 2019