Below are the valuation targets for Simon Property Group (SPG) over the next 10 years.
Our valuation targets for Simon Property Group (SPG) in 2020 are:
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$198.80 (overvalued)
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$126.70 (fair value)
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$54.60 (undervalued)
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$36.04 (extreme undervalue)
The valuation targets for Simon Property Group (SPG) are based on a dividend growth rate of 2.00% which is derived from the lowest calculated growth rate 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 1994:
10-Year Targets
Observations
We have a range from as low as $57.94 to as high as $219.49 from 2023 to 2025. These future estimates include a 33% cut in the dividend (as was the case in 2009) and a 2% dividend growth rate thereafter.
Our expectation is the SPG will achieve the fair value target level for the respective year. However, we remain cautious about gains above such a level.
see also: Our 2017 Warning of a REIT crash