Below are the valuation targets for General Mills (GIS) for the next 10 years.
Our valuation targets for General Mills (GIS) in 2018 are:
-
$75.46 (overvalued)
-
$59.05 (fair value)
-
$42.63 (undervalued)
- 27.93 (extreme undervalue)
The valuation targets for General Mills (GIS) are based on a dividend growth rate of 3.50% which is derived from the lowest calculated growth rated as indicated in Value Line Investment Survey dated October 19, 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 1996:
10-Year Targets
| Year | Undervalued | Fair Value | Overvalued | Extreme Undervalue |
| 2018 | $42.63 | $59.05 | $75.46 | $27.93 |
| 2019 | $44.12 | $61.11 | $78.10 | $28.91 |
| 2020 | $45.67 | $63.25 | $80.83 | $29.92 |
| 2021 | $47.26 | $65.46 | $83.66 | $30.97 |
| 2022 | $48.92 | $67.76 | $86.59 | $32.05 |
| 2023 | $50.63 | $70.13 | $89.62 | $33.17 |
| 2024 | $52.40 | $72.58 | $92.76 | $34.33 |
| 2025 | $54.24 | $75.12 | $96.01 | $35.53 |
| 2026 | $56.14 | $77.75 | $99.37 | $36.78 |
| 2027 | $58.10 | $80.47 | $102.84 | $38.07 |
| 2028 | $60.13 | $83.29 | $106.44 | $39.40 |
| 2029 | $62.24 | $86.20 | $110.17 | $40.78 |
| 2030 | $64.42 | $89.22 | $114.03 | $42.20 |
| 2031 | $66.67 | $92.34 | $118.02 | $43.68 |
Observations
According to Value Line Investment Survey, General Mills (GIS) has an expected price range of $55-$65 by 2021-2023. On our end, we have a range from as low as $47.26 to as high as $89.62 in the same period of time. Based on the range indicated in the historical chart above, General Mills (GIS) is currently undervalued.
***Track our growing list of 10-Year Target stocks***
Last update: December 8, 2018