Below are the valuation targets for Sun Life Financial (SLF.TO) for the next 10 years.
Our valuation targets for Sun Life Financial (SLF.TO) in 2019 are:
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$66.00 (overvalued)
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$49.75 (fair value)
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$33.50 (undervalued)
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$25.50 (extreme undervalue)
The valuation targets for Sun Life Financial (SLF.TO) are based on a dividend growth rate of 2.50% which is derived from the lowest calculated growth rate as indicated on the Value Line Investment Survey dated February 8, 2019 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
Observations
According to Value Line Investment Survey, Sun Life Financial (SLF.TO) has an expected price range of $60-$80 by 2021-2023. On our end, we have a range from as low as $35.20 to as high as $72.85 in the same period of time.
*Sun Life investment holdings from 1919 to 1927:
