Ecobank Transnational Valuation

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

ETIT (F CFA16) is trading above our estimate of [[fair value]] (F CFA15.66)

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

Valuation Score

2/6

Valuation Score 2/6

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 ETIT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ETIT (F CFA16) is trading above our estimate of fair value (F CFA15.66)

Significantly Below Fair Value: ETIT is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ETIT?

Key metric: As ETIT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ETIT. This is calculated by dividing ETIT's market cap by their current earnings.
What is ETIT's PE Ratio?
PE Ratio	1.3x
Earnings	US$295.74m
Market Cap	US$371.45m

ETIT 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 ETIT's PE Ratio compare to its peers?

The above table shows the PE ratio for ETIT 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	6.4x
BOAB Bank of Africa - Benin	8x	n/a	XOF 172.4b
BOAC Bank of Africa - Côte D'ivoire	7.5x	n/a	XOF 204.8b
NSBC NSIA Banque Société Anonyme	5.1x	n/a	XOF 180.6b
CBIBF Coris Bank International	5x	n/a	XOF 326.7b
ETIT Ecobank Transnational	1.3x	n/a	XOF 627.1b

Price-To-Earnings vs Peers: ETIT is good value based on its Price-To-Earnings Ratio (1.3x) compared to the peer average (6.4x).

Price to Earnings Ratio vs Industry

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

7 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	5.1x	10.1%
ETIT Ecobank Transnational	1.3x	n/a	US$371.25m

7 Companies		Estimated Growth	Market Cap
Industry Avg.	5.1x	10.1%
ETIT Ecobank Transnational	1.3x	n/a	US$371.25m

No more companies

Price-To-Earnings vs Industry: ETIT is good value based on its Price-To-Earnings Ratio (1.3x) compared to the African Banks industry average (5.1x).

Price to Earnings Ratio vs Fair Ratio

What is ETIT'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.

ETIT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	1.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ETIT'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.