Equity Group Holdings Plc

NASE:EQTY Stock Report

Mkt Cap: KSh170.9b

We’ve recently updated our valuation analysis.

Equity Group Holdings Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

EQTY 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.2x

Price to Earnings Ratio vs Peers

How does EQTY's PE Ratio compare to its peers?

The above table shows the PE ratio for EQTY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average3.7x
KCB KCB Group
3.2x17.4%KSh122.1b
NCBA NCBA Group
3.4xn/aKSh57.0b
COOP Co-operative Bank of Kenya
3.3xn/aKSh73.0b
ABSA Absa Bank Kenya
5xn/aKSh67.4b
EQTY Equity Group Holdings
3.7x16.3%KSh170.9b

Price-To-Earnings vs Peers: EQTY is good value based on its Price-To-Earnings Ratio (3.7x) compared to the peer average (3.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.6%
n/an/an/a

Price-To-Earnings vs Industry: EQTY is good value based on its Price-To-Earnings Ratio (3.7x) compared to the African Banks industry average (5.7x)


Price to Earnings Ratio vs Fair Ratio

What is EQTY'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.

EQTY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.7x
Fair PE Ratio3.4x

Price-To-Earnings vs Fair Ratio: EQTY is expensive based on its Price-To-Earnings Ratio (3.7x) compared to the estimated Fair Price-To-Earnings Ratio (3.4x).


Share Price vs Fair Value

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

Below Fair Value: EQTY (KES45.3) is trading above our estimate of fair value (KES17.43)

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


Analyst Price Targets

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

The above table shows the analyst EQTY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentKSh45.30
KSh74.32
+64.1%
18.8%KSh90.50KSh57.00n/a4
Jan ’24KSh44.50
KSh74.32
+67.0%
18.8%KSh90.50KSh57.00n/a4
Dec ’23KSh45.40
KSh74.52
+64.1%
20.7%KSh93.30KSh55.00n/a4
Nov ’23KSh46.45
KSh74.52
+60.4%
20.7%KSh93.30KSh55.00n/a4
Oct ’23KSh46.45
KSh74.52
+60.4%
20.7%KSh93.30KSh55.00n/a4
Sep ’23KSh48.00
KSh72.82
+51.7%
23.0%KSh93.30KSh55.00n/a4
Aug ’23KSh47.70
KSh71.17
+49.2%
21.5%KSh93.30KSh55.00n/a5
Jul ’23KSh43.00
KSh68.15
+58.5%
21.7%KSh93.30KSh57.00n/a4
Jun ’23KSh45.50
KSh61.21
+34.5%
24.8%KSh93.30KSh46.00n/a6
May ’23KSh47.90
KSh62.08
+29.6%
23.9%KSh93.30KSh46.00n/a8
Apr ’23KSh49.15
KSh58.46
+18.9%
15.9%KSh78.10KSh46.00n/a8
Mar ’23KSh50.00
KSh55.97
+11.9%
10.3%KSh64.30KSh46.00n/a9
Feb ’23KSh52.75
KSh55.72
+5.6%
10.3%KSh64.30KSh46.00KSh45.059
Jan ’23KSh52.75
KSh55.14
+4.5%
9.6%KSh64.30KSh46.00KSh44.509
Dec ’22KSh48.25
KSh54.92
+13.8%
9.6%KSh64.30KSh46.00KSh45.409
Nov ’22KSh49.75
KSh53.62
+7.8%
12.4%KSh64.30KSh41.07KSh46.459
Oct ’22KSh50.50
KSh53.26
+5.5%
14.1%KSh64.30KSh41.07KSh46.4510
Sep ’22KSh52.50
KSh51.71
-1.5%
14.7%KSh64.30KSh41.07KSh48.0010
Aug ’22KSh48.90
KSh49.18
+0.6%
15.1%KSh64.30KSh41.07KSh47.7011
Jul ’22KSh44.85
KSh45.37
+1.1%
6.6%KSh49.90KSh41.07KSh43.0010
Jun ’22KSh42.20
KSh45.37
+7.5%
6.6%KSh49.90KSh41.07KSh45.5010
May ’22KSh39.15
KSh44.82
+14.5%
5.6%KSh49.60KSh41.82KSh47.908
Apr ’22KSh39.05
KSh44.82
+14.8%
5.6%KSh49.60KSh41.82KSh49.158
Mar ’22KSh37.90
KSh43.66
+15.2%
3.2%KSh46.00KSh41.82KSh50.009
Feb ’22KSh37.20
KSh43.66
+17.4%
3.2%KSh46.00KSh41.82KSh52.759

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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