Zenith Bank Plc

NGSE:ZENITHBANK Stock Report

Mkt Cap: ₦897.9b

We’ve recently updated our valuation analysis.

Zenith Bank Valuation

Is ZENITHBANK 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 ZENITHBANK?

Other financial metrics that can be useful for relative valuation.

ZENITHBANK 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 Ratio0.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ZENITHBANK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average3.9x
GTCO Guaranty Trust Holding
3.3x17.4%₦604.0b
FBNH FBN Holdings
3.6xn/a₦511.5b
ACCESSCORP Access Holdings
6.3x31.8%₦425.2b
ETI Ecobank Transnational
2.4xn/a₦308.6b
ZENITHBANK Zenith Bank
3.8x13.9%₦897.9b

Price-To-Earnings vs Peers: ZENITHBANK is good value based on its Price-To-Earnings Ratio (3.8x) compared to the peer average (3.9x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.9%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.9%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: ZENITHBANK is good value based on its Price-To-Earnings Ratio (3.8x) compared to the African Banks industry average (5.7x)

Price to Earnings Ratio vs Fair Ratio

What is ZENITHBANK'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.

ZENITHBANK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.9x
Fair PE Ratio3.4x

Price-To-Earnings vs Fair Ratio: ZENITHBANK is expensive based on its Price-To-Earnings Ratio (3.8x) compared to the estimated Fair Price-To-Earnings Ratio (3.4x).

Share Price vs Fair Value

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

Below Fair Value: ZENITHBANK (NGN27.85) is trading above our estimate of fair value (NGN20.24)

Significantly Below Fair Value: ZENITHBANK 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 ZENITHBANK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₦27.85
₦31.87
+14.4%
17.9%₦39.50₦24.04n/a6
May ’24₦22.80
₦30.57
+34.1%
13.6%₦37.20₦25.80n/a4
Apr ’24₦25.85
₦32.35
+25.2%
16.6%₦41.70₦25.80n/a6
Mar ’24₦26.65
₦33.16
+24.4%
16.1%₦41.70₦25.80n/a7
Feb ’24₦25.50
₦33.16
+30.0%
16.1%₦41.70₦25.80n/a7
Jan ’24₦24.00
₦33.94
+41.4%
15.4%₦41.70₦25.80n/a7
Dec ’23₦22.75
₦33.94
+49.2%
15.4%₦41.70₦25.80n/a7
Nov ’23₦20.00
₦33.83
+69.1%
14.5%₦41.70₦25.80n/a8
Oct ’23₦20.00
₦33.83
+69.1%
14.5%₦41.70₦25.80n/a8
Sep ’23₦21.25
₦33.83
+59.2%
14.5%₦41.70₦25.80n/a8
Aug ’23₦21.00
₦33.24
+58.3%
13.6%₦40.00₦25.80n/a9
Jul ’23₦21.85
₦33.24
+52.1%
13.6%₦40.00₦25.80n/a9
Jun ’23₦23.45
₦33.24
+41.8%
13.6%₦40.00₦25.80₦29.509
May ’23₦24.50
₦33.89
+38.3%
9.7%₦40.00₦29.59₦22.8010
Apr ’23₦22.40
₦33.50
+49.6%
8.8%₦39.17₦29.59₦25.8510
Mar ’23₦27.00
₦33.73
+24.9%
7.3%₦37.22₦29.39₦26.659
Feb ’23₦27.35
₦33.63
+23.0%
8.8%₦37.60₦29.39₦25.509
Jan ’23₦25.15
₦33.40
+32.8%
9.0%₦37.60₦29.39₦24.009
Dec ’22₦24.00
₦33.40
+39.2%
9.0%₦37.60₦29.39₦22.759
Nov ’22₦25.15
₦33.40
+32.8%
9.0%₦37.60₦29.39₦20.009
Oct ’22₦23.45
₦33.00
+40.7%
9.4%₦37.60₦29.30₦20.0010
Sep ’22₦24.00
₦33.02
+37.6%
9.5%₦38.80₦29.30₦21.2510
Aug ’22₦24.55
₦33.02
+34.5%
9.5%₦38.80₦29.30₦21.0010
Jul ’22₦23.90
₦32.64
+36.6%
9.9%₦38.80₦28.58₦21.8511
Jun ’22₦22.85
₦32.43
+41.9%
12.7%₦42.80₦28.58₦23.4511

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

Discover undervalued companies