Below are the valuation targets for Methanex Corp. (MEOH) over the next 10 years.
Our valuation targets for Methanex Corp. (MEOH) in 2019 are:
- $84.96 (overvalued)
- $64.26 (fair value)
- $43.26 (undervalued)
- $36.15 (extreme undervalue)
The valuation targets for Methanex Corp. (MEOH) are based on a dividend growth rate of 7.23% which is derived from one half the average growth rate from 2003 to 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 2002:
Methanex Corp. (MEOH) has an expected price range of $53.71 to $120.45 by 2022-2024. By most reasonable measures, MEOH is undervalued however a single purchase of the stock is ideally suited for when the stock price establishes a rising trend. Buying MEOH now would require a two transaction strategy, once at the current price and again at or below $36.