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.
West Africa Top 30 – June 21.pdf