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3 companies account for 49% by value of W. Africa’s Top 30

By Published On: July 21st, 2021

In this latest equities West Africa Top 30 Equities Valuation Report, dated 30 June 2021 the 10 top Cap companies accounted for $37.4bn of the $46.9bn total market capitalisation with the remaining 20 Mid Cap companies accounting for $9.5bn.

The respective P/E Ratios, Price to Book Value and ROE ratios are as follows

For the 10 Top-cap Companies

  • P/E Ratio 18.9 times
  • Price to Book Value 10.14 times
  • ROE 54.4%

For the 20 Mid-cap Companies

  • P/E Ratio 7.2 times
  • Price to Book Value 1.16 times
  • ROE 13.8%

The total/weighted average indicators for the Top 30 are $46.9bn total market capitalisation recording PERs of 16.6 times, PBR of 8.32 and ROE of 46.2%.

Dangote Cement, MTN Nigeria and BUA account for 49% by value of the Top 30 in West Africa. Q1 2021 reported earnings were up 26% as the initial impact Covid 19 passed.

Dual-listed stocks trade at discounts to their home markets with an 8% discount for GTB, 23% for Seplat Petroleum and 35% for Airtel Africa. Big cap stocks are far more profitable and record ROE’s of 54% vs 14% for mid-cap stocks. Of the Top 30 stocks, Nigeria has 19, the BRVM 7 and Ghana 4.

Banks account for 16 stocks, manufacturing 8, telecoms four and others two.

Related download

West Africa Top 30 – June 21.pdf

Hartland-Peel Africa Equity Research manages one of the most comprehensive sources of financial information on Sub-Sahara Africa ex South Africa (SSA ex SA) listed companies, stock markets and sectors going back on a monthly basis to 1990. We also have developed SSA ex SA indices and regional sub-indices to provide investment return data and have stock exchange indices, FX rates, inflation, commodity data, stock price data and company financial information on some 200 plus companies. Hartland-Peel Africa Equity Research, established in 1990, was founded by Christopher Hartland-Peel who has worked extensively in emerging markets – with the IFC in Washington DC, the Asian Development Bank, USAID, and Standard Bank and Exotix in London. In the 1990s he was based in Nairobi working on privatisation and financial market development where he realised there was little or no effective research done on sub-Saharan stock markets. His book, “African Equities, a guide to markets and companies” was published by Euromoney Books in 1996 and the data base represents a continuation of this.
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