Below are the valuation targets for SSE Plc (SSE.L) for the next 10 years.
Our valuation targets for SSE Plc (SSE.L) in 2021 are:
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2,798.07 (overvalued)
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2,405.54 (fair value)
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2,013.00 (undervalued)
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1,328.58 (extreme undervalue)
The valuation targets for SSE Plc (SSE.L) are based on a dividend growth rate of 7.50% 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 1993:
10-Year Targets
Observations
SSE Plc (SSE.L) has an expected price range of 2,500.74 to 4,016.99 by 2024-2026.
The level of the stock price can generally be attributed to the threat of being nationalized. The prices above reflects if the company was not under such a threat. To gain more insight on this concept, please read our article titled “Dow’s Theory on Government and Markets” It will be noticed that stocks and markets under threat of nationalization will trade like government bonds.
Last updated: February 25, 2021
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