Below are the valuation targets for People’s United Financial Inc. (PBCT) for the next 10 years.
Our valuation targets for People’s United Financial Inc. (PBCT) in 2018 are:
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$20.16 (overvalued)
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$14.49 (fair value)
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$8.82 (undervalued)
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$5.82 (extreme undervalued)
The valuation targets for People’s United Financial Inc. (PBCT) are based on a dividend growth rate of 1.50% which is derived from the lowest calculated growth rated as indicated in Value Line Investment Survey dated October 5, 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 2004:
10-Year Targets
| Year | Undervalued | Fair Value | Overvalued | Extreme Undervalue |
| 2018 | $8.82 | $14.49 | $20.16 | $5.82 |
| 2019 | $8.95 | $14.71 | $20.46 | $5.91 |
| 2020 | $9.09 | $14.93 | $20.77 | $6.00 |
| 2021 | $9.22 | $15.15 | $21.08 | $6.09 |
| 2022 | $9.36 | $15.38 | $21.40 | $6.18 |
| 2023 | $9.50 | $15.61 | $21.72 | $6.27 |
| 2024 | $9.64 | $15.84 | $22.04 | $6.37 |
| 2025 | $9.79 | $16.08 | $22.37 | $6.46 |
| 2026 | $9.94 | $16.32 | $22.71 | $6.56 |
| 2027 | $10.08 | $16.57 | $23.05 | $6.66 |
| 2028 | $10.24 | $16.82 | $23.40 | $6.76 |
| 2029 | $10.39 | $17.07 | $23.75 | $6.86 |
| 2030 | $10.55 | $17.32 | $24.10 | $6.96 |
| 2031 | $10.70 | $17.58 | $24.47 | $7.06 |
Observations
According to Value Line Investment Survey, People’s United Financial Inc. (PBCT) has an expected price range of $20-$30 by 2021-2023. On our end, we have a range from as low as $9.22 to as high as $21.72 in the same period of time.