Below are the valuation targets for Schlumberger (SLB) for the next 10 years.
Our valuation targets for Schlumberger (SLB) in 2018 are:
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$130.00 (overvalued)
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$101.25 (fair value)
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$72.50 (undervalued)
The valuation targets for Schlumberger (SLB) are based on a dividend growth rate of 3% which is derived from the lowest dividend growth rated as indicated on the Value Line Investment Survey dated August 3, 2018 and applied to Edson Gould’s Altimeter. A graphical representation of the overvalued, fair value, and undervalued levels are below.
10-Year Targets
| Year | Undervalued | Overvalued | Fair value |
| 2018 | $72.50 | $130.00 | $101.25 |
| 2019 | $74.68 | $133.90 | $104.29 |
| 2020 | $76.92 | $137.92 | $107.42 |
| 2021 | $79.22 | $142.05 | $110.64 |
| 2022 | $81.60 | $146.32 | $113.96 |
| 2023 | $84.05 | $150.71 | $117.38 |
| 2024 | $86.57 | $155.23 | $120.90 |
| 2025 | $89.17 | $159.88 | $124.52 |
| 2026 | $91.84 | $164.68 | $128.26 |
| 2027 | $94.60 | $169.62 | $132.11 |
| 2028 | $97.43 | $174.71 | $136.07 |
| 2029 | $100.36 | $179.95 | $140.15 |
Observations
According to Value Line Investment Survey, Schlumberger (SLB) has an expected price range of $110-$150 by 2021-2023. On our end, we have a range from as low as $79.22 to as high as $150.71 in the same period of time.
To get at better sense of the quality of the forecasts that we’ve arrived at, we recommend reviewing our Investment Guide to NLO 10-Year Targets.