Below are the valuation targets for Gluskin Sheff (GS.TO) for the next 10 years.
Our valuation targets for Gluskin Sheff (GS.TO) in 2019 are:
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$43.56 (overvalued)
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$28.19 (fair value)
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$12.81 (undervalued)
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$8.46 (extreme undervalue)
The valuation targets for Gluskin Sheff (GS.TO) are based on a dividend growth rate of 2.50% 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 2006:
10-Year Targets
Observations
Gluskin Sheff has an expected price range of $13.46-$48.08 by 2021-2023. However, the absence of a dividend increase since 2016 and a decline below the undervalued level suggest that, at best, GS.TO can only increase to the “fair value” target price under favorable conditions.
Last updated: January 22, 2019