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DANGCEM: Lower Discount Rate Will Support Stable Margins And Earnings Outlook

Analysts Lift Dangote Cement Price Target as Profit Margin Outlook Improves and Discount Rate Falls

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DANGCEM
AnalystConsensusTarget
Not Invested
Published 12 Dec 2024

Update shared on 09 Dec 2025

Previous
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AnalystConsensusTarget's Fair Value
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1Y
28.4%
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Analysts have nudged their price target on Dangote Cement slightly higher to N654.06 per share from N654.06 per share, citing marginal improvements in the company’s long term discount rate assumptions and sustained expectations for robust revenue growth and stable profit margins.

What's in the News

  • Board meeting scheduled for October 27, 2025 to review and discuss the unaudited financial statements for the quarter ending September 30, 2025, along with other strategic matters (company disclosure)

Valuation Changes

  • Fair Value: Unchanged at NGN 654.06 per share, indicating no revision to the core valuation estimate.
  • Discount Rate: Edged down slightly from 29.39 percent to 29.31 percent, reflecting a marginally lower perceived risk profile.
  • Revenue Growth: Effectively stable at about 17.56 percent, with only a negligible technical adjustment in the modelled rate.
  • Net Profit Margin: Maintained at roughly 21.00 percent, with an immaterial rounding difference versus the prior assumption.
  • Future P/E: Eased marginally from 16.66x to 16.63x, suggesting a slightly lower multiple applied to forward earnings.

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