Petrotahlil :Methanex valuation targets for Methanex Corp. (MEOH) in 2019 are:
$64.26 (fair value)
$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.
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.
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