Ecobank Transnational Incorporated

NGSE:ETI Stock Report

Market Cap: ₦639.4b

Ecobank Transnational Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: ETI (NGN26) is trading below our estimate of fair value (NGN27)

Significantly Below Fair Value: ETI is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ETI 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 Ration/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ETI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average2.8x
ACCESSCORP Access Holdings
1.1x-21.9%₦664.5b
UBN Union Bank of Nigeria
5.5xn/a₦194.6b
GTCO Guaranty Trust Holding
1.7x-16.1%₦882.0b
FBNH FBN Holdings
3.2x-2.2%₦972.8b
ETI Ecobank Transnational
1.6xn/a₦639.4b

Price-To-Earnings vs Peers: ETI is good value based on its Price-To-Earnings Ratio (1.6x) compared to the peer average (2.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-7.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-7.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ETI is good value based on its Price-To-Earnings Ratio (1.6x) compared to the African Banks industry average (5.4x).


Price to Earnings Ratio vs Fair Ratio

What is ETI'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.

ETI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio1.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ETI'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?

The above table shows the analyst ETI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₦26.00
₦29.27
+12.6%
19.1%₦34.88₦23.67n/a2
Dec ’23₦10.05
₦14.15
+40.8%
14.7%₦16.23₦12.07₦17.102
Nov ’23₦9.95
₦14.15
+42.2%
14.7%₦16.23₦12.07₦15.002
Oct ’23₦11.25
₦14.15
+25.8%
14.7%₦16.23₦12.07₦16.002
Sep ’23₦11.00
₦14.15
+28.7%
14.7%₦16.23₦12.07₦15.002
Aug ’23₦9.90
₦14.15
+42.9%
14.7%₦16.23₦12.07₦15.502
Jul ’23₦10.60
₦12.04
+13.6%
34.5%₦16.19₦7.89₦15.202
Jun ’23₦12.50
₦12.04
-3.7%
34.5%₦16.19₦7.89₦12.552
May ’23₦12.00
₦12.06
+0.5%
33.2%₦17.46₦7.90₦11.103
Apr ’23₦12.00
₦12.06
+0.5%
33.2%₦17.46₦7.90₦11.253

Analyst Forecast: Target price is less than 20% higher than the current share price.


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