Below are the valuation targets for SNC-Lavalin Group (SNC.TO) for the next 10 years.
Our valuation targets for SNC-Lavalin Group (SNC.TO) in 2019 are:
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$70.32 (overvalued)
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$56.54 (fair value)
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$42.76 (undervalued)
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$28.41 (extreme undervalue)
The valuation targets for SNC-Lavalin Group (SNC.TO) are based on a dividend growth rate of 2.25% which is derived from one half the lowest calculated growth rate as indicated on the Value Line Investment Survey dated December 21, 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 2002:
10-Year Targets
Observations
According to Value Line Investment Survey dated December 20, 2019, SNC-Lavalin Group (SNC.TO) has an expected price range of $35-$55 by 2022-2024. On our end, we have a range from as low as $44.71 to as high as $76.86 in the same period of time.
Worth noting is that Value Line Investment Survey has cut their long range targets (at most) by as much as 50% since their December 21, 2018 review of SNC while we have reduced our long range targets by as much as 20% since our last posting on January 25, 2019.
Last updated: December 20, 2019