United Bank for Africa Plc

NGSE:UBA Stock Report

Market Cap: ₦656.6b

United Bank for Africa Valuation

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

Below Fair Value: UBA (NGN19.2) is trading above our estimate of fair value (NGN14.06)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

UBA 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 Ratio-0.09x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for UBA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average1.3x
GTCO Guaranty Trust Holding
0.9x-14.7%₦794.7b
ACCESSCORP Access Holdings
0.8x-16.6%₦564.7b
FBNH FBN Holdings
2.4x-2.2%₦734.1b
ZENITHBANK Zenith Bank
1.1x1.6%₦941.9b
UBA United Bank for Africa
1x-11.1%₦656.6b

Price-To-Earnings vs Peers: UBA is good value based on its Price-To-Earnings Ratio (1x) compared to the peer average (1.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-7.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-7.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: UBA is good value based on its Price-To-Earnings Ratio (1x) compared to the African Banks industry average (5.4x).


Price to Earnings Ratio vs Fair Ratio

What is UBA'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.

UBA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio1x
Fair PE Ratio1.4x

Price-To-Earnings vs Fair Ratio: UBA is good value based on its Price-To-Earnings Ratio (1x) compared to the estimated Fair Price-To-Earnings Ratio (1.4x).


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 UBA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₦19.20
₦35.35
+84.1%
18.5%₦45.10₦29.25n/a5
May ’25₦23.90
₦33.95
+42.1%
24.1%₦45.10₦22.55n/a5
Apr ’25₦28.00
₦27.16
-3.0%
37.6%₦45.10₦17.67n/a5
Mar ’25₦23.00
₦27.16
+18.1%
37.6%₦45.10₦17.67n/a5
Feb ’25₦26.80
₦27.16
+1.3%
37.6%₦45.10₦17.67n/a5
Jan ’25₦25.65
₦27.16
+5.9%
37.6%₦45.10₦17.67n/a5
Dec ’24₦21.30
₦23.70
+11.3%
22.0%₦31.00₦17.67n/a5
Nov ’24₦21.00
₦23.70
+12.8%
22.0%₦31.00₦17.67n/a5
Oct ’24₦16.80
₦22.36
+33.1%
23.3%₦31.00₦17.67n/a4
Sep ’24₦14.90
₦21.54
+44.5%
28.2%₦31.00₦14.38n/a4
Aug ’24₦13.95
₦19.39
+39.0%
35.7%₦31.00₦10.80n/a5
Jul ’24₦12.25
₦17.35
+41.6%
24.0%₦21.90₦10.80n/a5
Jun ’24₦9.80
₦17.35
+77.0%
24.0%₦21.90₦10.80n/a5
May ’24₦7.75
₦17.35
+123.9%
24.0%₦21.90₦10.80₦23.905
Apr ’24₦8.35
₦15.69
+88.0%
26.5%₦20.80₦10.80₦28.005
Mar ’24₦8.80
₦15.33
+74.2%
26.1%₦20.80₦10.80₦23.006
Feb ’24₦8.20
₦15.33
+87.0%
26.1%₦20.80₦10.80₦26.806
Jan ’24₦7.60
₦15.85
+108.5%
23.1%₦20.80₦10.80₦25.656
Dec ’23₦7.55
₦15.85
+109.9%
23.1%₦20.80₦10.80₦21.306
Nov ’23₦7.10
₦15.85
+123.2%
23.1%₦20.80₦10.80₦21.006
Oct ’23₦7.00
₦15.27
+118.1%
24.3%₦20.80₦10.80₦16.807
Sep ’23₦7.30
₦14.08
+92.9%
23.8%₦20.80₦10.80₦14.906
Aug ’23₦7.20
₦13.51
+87.7%
25.1%₦20.80₦10.10₦13.957
Jul ’23₦7.40
₦13.51
+82.6%
25.1%₦20.80₦10.10₦12.257
Jun ’23₦7.90
₦13.77
+74.2%
32.5%₦23.20₦10.10₦9.806
May ’23₦8.25
₦13.80
+67.3%
29.1%₦23.20₦10.10₦7.758

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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