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Safaricom holds 49% of East Africa Top 30’s market capitalisation

By Published On: July 22nd, 2021

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.

Related download

East Africa Top 30_Q2’21.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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