BUA Cement Valuation

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

BUACEMENT (NGN95) is trading above our estimate of [[fair value]] (NGN67.38)

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: BUACEMENT (NGN95) is trading above our estimate of fair value (NGN67.38)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BUACEMENT. This is calculated by dividing BUACEMENT's market cap by their current earnings.
What is BUACEMENT's PE Ratio?
PE Ratio	75.9x
Earnings	₦42.36b
Market Cap	₦3.22t

BUACEMENT 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/Revenue	5.4x
Enterprise Value/EBITDA	20x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BUACEMENT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	18.4x
DANGCEM Dangote Cement	17.8x	32.7%	₦8.0t
WAPCO Lafarge Africa	12.8x	21.9%	₦918.1b
EMSTEEL Emsteel Building Materials PJSC	28.4x	n/a	د.إ8.7b
MCEMENT Malayan Cement Berhad	14.7x	8.7%	RM 6.3b
BUACEMENT BUA Cement	75.9x	48.9%	₦3.2t

Price-To-Earnings vs Peers: BUACEMENT is expensive based on its Price-To-Earnings Ratio (75.9x) compared to the peer average (18.4x).

Price to Earnings Ratio vs Industry

How does BUACEMENT's PE Ratio compare vs other companies in the Global Basic Materials Industry?

5 Companies	Price / Earnings	Estimated Growth	Market Cap

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: BUACEMENT is expensive based on its Price-To-Earnings Ratio (75.9x) compared to the Global Basic Materials industry average (16.3x).

Price to Earnings Ratio vs Fair Ratio

What is BUACEMENT'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.

BUACEMENT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	75.9x
Fair PE Ratio	30x

Price-To-Earnings vs Fair Ratio: BUACEMENT is expensive based on its Price-To-Earnings Ratio (75.9x) compared to the estimated Fair Price-To-Earnings Ratio (30x).

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 BUACEMENT forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	₦95.00	₦101.84 +7.2%	55.4%	₦179.85	₦48.14	n/a	3
Nov ’25	₦97.80	₦102.88 +5.2%	53.9%	₦179.85	₦51.27	n/a	3
Oct ’25	₦110.00	₦102.88 -6.5%	53.9%	₦179.85	₦51.27	n/a	3
Sep ’25	₦113.90	₦102.88 -9.7%	53.9%	₦179.85	₦51.27	n/a	3
Aug ’25	₦143.20	₦67.26 -53.0%	15.3%	₦77.52	₦56.99	n/a	2
Jul ’25	₦143.20	₦67.26 -53.0%	15.3%	₦77.52	₦56.99	n/a	2
Jun ’25	₦143.20	₦67.26 -53.0%	15.3%	₦77.52	₦56.99	n/a	2
May ’25	₦143.20	₦85.33 -40.4%	9.1%	₦93.13	₦77.52	n/a	2
Apr ’25	₦143.20	₦86.82 -39.4%	7.3%	₦93.13	₦80.50	n/a	2
Mar ’25	₦135.00	₦94.81 -29.8%	13.1%	₦110.81	₦80.50	n/a	3
Feb ’25	₦185.00	₦94.81 -48.7%	13.1%	₦110.81	₦80.50	n/a	3
Jan ’25	₦97.00	₦80.24 -17.3%	34.2%	₦110.81	₦36.50	n/a	4
Dec ’24	₦104.00	₦80.24 -22.9%	34.2%	₦110.81	₦36.50	n/a	4
Nov ’24	₦107.00	₦80.24 -25.0%	34.2%	₦110.81	₦36.50	₦97.80	4
Oct ’24	₦85.50	₦75.94 -11.2%	40.2%	₦110.81	₦36.50	₦110.00	3
Sep ’24	₦96.15	₦73.66 -23.4%	50.4%	₦110.81	₦36.50	₦113.90	2
Aug ’24	₦98.95	₦73.66 -25.6%	50.4%	₦110.81	₦36.50	₦143.20	2
Jul ’24	₦92.25	₦73.66 -20.2%	50.4%	₦110.81	₦36.50	₦143.20	2
Jun ’24	₦92.00	₦73.66 -19.9%	50.4%	₦110.81	₦36.50	₦143.20	2
Mar ’24	₦99.45	₦30.45 -69.4%	1.5%	₦30.90	₦30.00	₦135.00	2
Feb ’24	₦99.45	₦30.45 -69.4%	1.5%	₦30.90	₦30.00	₦185.00	2
Jan ’24	₦97.75	₦33.95 -65.3%	9.0%	₦37.00	₦30.90	₦97.00	2
Dec ’23	₦77.00	₦33.95 -55.9%	9.0%	₦37.00	₦30.90	₦104.00	2
Nov ’23	₦72.00	₦33.95 -52.8%	9.0%	₦37.00	₦30.90	₦107.00	2

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