Flour Mills of Nigeria PLC

NGSE:FLOURMILL Stock Report

Market Cap: ₦326.0b

Flour Mills of Nigeria Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: FLOURMILL (NGN79.5) is trading above our estimate of fair value (NGN39.07)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FLOURMILL. This is calculated by dividing FLOURMILL's market cap by their current earnings.
What is FLOURMILL's PE Ratio?
PE Ratio11.4x
Earnings₦28.54b
Market Cap₦325.98b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FLOURMILL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.2x
NASCON Nascon Allied Industries
6.6x19.5%₦77.0b
UACN UAC of Nigeria
4.7xn/a₦68.5b
BUAFOODS BUA Foods
34.2xn/a₦7.1t
OKOMUOIL Okomu Oil Palm
11.4xn/a₦320.6b
FLOURMILL Flour Mills of Nigeria
11.4x1.7%₦326.0b

Price-To-Earnings vs Peers: FLOURMILL is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (14.2x).

Price to Earnings Ratio vs Industry

How does FLOURMILL's PE Ratio compare vs other companies in the African Food Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FLOURMILL 11.4xIndustry Avg. 9.7xNo. of Companies13PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FLOURMILL is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the African Food industry average (9.8x).

Price to Earnings Ratio vs Fair Ratio

What is FLOURMILL'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.

FLOURMILL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio6.3x

Price-To-Earnings vs Fair Ratio: FLOURMILL is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (6.3x).

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 FLOURMILL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₦79.50
₦51.85
-34.8%
9.6%₦58.82₦45.22n/a4
Nov ’25₦62.00
₦50.23
-19.0%
6.3%₦53.54₦45.22n/a4
Oct ’25₦62.05
₦49.53
-20.2%
6.9%₦53.54₦45.22n/a3
Sep ’25₦44.80
₦42.78
-4.5%
12.2%₦49.82₦35.91n/a4
Aug ’25₦46.00
₦41.38
-10.0%
12.4%₦49.82₦35.91n/a4
Jul ’25₦44.50
₦43.39
-2.5%
12.9%₦49.82₦35.91n/a4
Jun ’25₦38.00
₦41.24
+8.5%
11.8%₦47.64₦35.91n/a3
May ’25₦30.50
₦41.24
+35.2%
11.8%₦47.64₦35.91n/a3
Apr ’25₦39.00
₦41.78
+7.1%
14.0%₦47.64₦35.91n/a2
Mar ’25₦31.25
₦41.78
+33.7%
14.0%₦47.64₦35.91n/a2
Feb ’25₦39.00
₦41.78
+7.1%
14.0%₦47.64₦35.91n/a2
Jan ’25₦33.05
₦42.00
+27.1%
13.4%₦47.64₦36.36n/a2
Dec ’24₦31.70
₦42.00
+32.5%
13.4%₦47.64₦36.36n/a2
Aug ’24₦28.50
₦29.84
+4.7%
7.1%₦31.97₦27.71₦46.002
Jul ’24₦34.10
₦39.65
+16.3%
34.9%₦63.12₦27.71₦44.504
Jun ’24₦35.10
₦39.65
+13.0%
34.9%₦63.12₦27.71₦38.004
May ’24₦31.00
₦38.13
+23.0%
33.5%₦63.12₦27.71₦30.505
Apr ’24₦31.00
₦38.13
+23.0%
33.5%₦63.12₦27.71₦39.005
Mar ’24₦32.00
₦38.13
+19.2%
33.5%₦63.12₦27.71₦31.255
Feb ’24₦30.00
₦38.13
+27.1%
33.5%₦63.12₦27.71₦39.005
Jan ’24₦28.40
₦46.02
+62.1%
30.8%₦63.55₦32.04₦33.055
Dec ’23₦28.10
₦43.64
+55.3%
27.4%₦63.55₦32.04₦31.705
Nov ’23₦30.30
₦43.64
+44.0%
27.4%₦63.55₦32.04₦31.005

Analyst Forecast: Target price is lower than the current share price.

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