Safaricom’s US$15.4bn market capitalisation accounts for 49% of market capitalisation of the Top 30 companies of East Africa and Mauritius, as of 31 March 2021.
In this latest equities East Africa Top 30 Equities Valuation Report, dated 30 June 2021 the 10 Top Cap companies accounted for $25.4bn of the $31.3bn total market capitalisation with the remaining 20 Mid Cap companies accounting for $5.9bn.
The respective P/E Ratios, Price to Book Value and ROE ratios are as follows:
For the 10 Top-cap Companies:
- P/E Ratio 30.6x
- Price to Book Value 9.41x
- ROE 34.6%
For the 20 Mid-cap Companies:
- P/E Ratio 8.0x
- Price to Book Value 1.33x
- ROE 12.4%
The total/weighted average indicators for the Top 30 are $31.3bn total market capitalisation recording PE Ratios of 26.3x, Price to Book Value Ratios of 7.89x and ROE of 30.4%.
Safaricom’s US$15.4bn market capitalisation accounts for 49% of market capitalisation of the Top 30 companies in East Africa, but note that its weighting skews the data.
Q1 2021 reported earnings were up 22% as the initial impact COVID-19 passed.
Big cap stocks are far more profitable than small cap stocks with ROE’s of 35% vs 12%.
Of the Top 30 stocks, Kenya has 14, Mauritius 8, Tanzania 6, Uganda one and Rwanda one.
East Africa Top 30_Q2’21.pdf