10 times 2015 earnings
All the fertilizer companies which are producers of potash took a hit one year ago with the collapse of the FSO cartel. AGU is much less impacted than POT or MOS since we only one fifthe the potash production capacity as the other two
Separately has suffered a number of one time glitches and they are integrating the new retail acquisitions.
A good dividend paying stock with divi growth expected and a growing business with a healthy balance sheet should trade at 14 to 18 times earnings. AGU is currently trading for 14 or 15 times 2014 estimated earnings according to several analysts. But it is selling for only 10 or 11 times forecasted 2015 earnings of about ~$9 (USA funds) per share.
Bargains on Wall Street or bargains on Bay Street are getting harder and harder to find. AGU is certainly one of few
My estimate is for $C150 share price sometime in 2016 subsequent to 2015 earnings release, an increased dividend and a bright outlook. in 2016 the divi should bump up to $4 (US) per share.
AGU is my number 2 holding and I am thinking about making it my number one stock.
Of course, as my friend jokes, there are two ways to make that happen. Buying more AGU is one way. The other way is to sell my current number one holding.