Absa Bank Botswana Valuation

Q: What is the Fair Price of ABBL-EQO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ABBL-EQO (BWP6.64) is trading above our estimate of [[fair value]] (BWP4.05)

Is ABBL-EQO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ABBL-EQO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ABBL-EQO (BWP6.64) is trading above our estimate of fair value (BWP4.05)

Significantly Below Fair Value: ABBL-EQO is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ABBL-EQO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ABBL-EQO. This is calculated by dividing ABBL-EQO's market cap by their current preferred multiple.
What is ABBL-EQO's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	P5.66b

ABBL-EQO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does ABBL-EQO's PE Ratio compare to its peers?

The above table shows the PE ratio for ABBL-EQO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	14.6x
FNBB-EQO First National Bank of Botswana	9.9x	n/a	P12.6b
SCBB-EQO Standard Chartered Bank Botswana	7.5x	n/a	P2.1b
ACC-EQO Access Bank Botswana	35.1x	n/a	P1.5b
FIB First Investment Bank AD	5.9x	n/a	лв742.4m
ABBL-EQO Absa Bank Botswana	9.1x	n/a	P5.7b

Price-To-Earnings vs Peers: ABBL-EQO is good value based on its Price-To-Earnings Ratio (9.1x) compared to the peer average (14.6x).

Price to Earnings Ratio vs Industry

How does ABBL-EQO's PE Ratio compare vs other companies in the African Banks Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	11.5%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	11.5%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: ABBL-EQO is expensive based on its Price-To-Earnings Ratio (9.1x) compared to the African Banks industry average (4.9x).

Price to Earnings Ratio vs Fair Ratio

What is ABBL-EQO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ABBL-EQO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ABBL-EQO's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.