Below are the price targets for NTPC Limited over the next 10 years.
Our price targets for NTPC Limited for the remainder of 2021 are:
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174.00 (overvalued)
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145.00 (fair value)
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116.00 (undervalued)
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81.20 (extreme undervalue)
The valuation targets for NTPC Limited are based on a dividend growth rate of 4.07% 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 2012:
10-Year Targets
Observations
NTPC Limited is down more than -56% from the 2007 peak. The continued inability to exceed prior peaks in 2017 and 2009 while falling below the 2014 low weighs heavily on current long term investors.
A wait and see approach is necessary and we would not be compelled to enter into a transaction until the price reverts to above the historical undervalued range. Those willing to acquire the stock now must accept the minimum downside risk to the 81.20 level.
Use the data and charts as a guideline in case of material changes.
see also: