Lafarge Africa Valuation

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

Below Fair Value: WAPCO (NGN35.9) is trading above our estimate of fair value (NGN23.18)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

WAPCO 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/Revenue1.1x
Enterprise Value/EBITDA3.8x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WAPCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average41.2x
BUACEMENT BUA Cement
80x44.4%₦4.8t
DANGCEM Dangote Cement
24.5x26.9%₦11.0t
ACKR Ackerstein Group
16.9xn/a₪1.5b
KCEM Kuwait Cement Company K.P.S.C
43.2xn/aد.ك126.9m
WAPCO Lafarge Africa
14x21.4%₦578.3b

Price-To-Earnings vs Peers: WAPCO is good value based on its Price-To-Earnings Ratio (14x) compared to the peer average (41.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a23.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a23.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: WAPCO is good value based on its Price-To-Earnings Ratio (14x) compared to the Global Basic Materials industry average (15.4x).


Price to Earnings Ratio vs Fair Ratio

What is WAPCO'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.

WAPCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14x
Fair PE Ratio19.9x

Price-To-Earnings vs Fair Ratio: WAPCO is good value based on its Price-To-Earnings Ratio (14x) compared to the estimated Fair Price-To-Earnings Ratio (19.9x).


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 WAPCO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₦35.90
₦39.40
+9.8%
16.1%₦45.96₦29.60n/a5
Jun ’25₦33.80
₦39.40
+16.6%
16.1%₦45.96₦29.60n/a5
May ’25₦32.85
₦36.85
+12.2%
18.5%₦45.96₦29.60n/a3
Apr ’25₦38.05
₦36.85
-3.1%
18.5%₦45.96₦29.60n/a3
Mar ’25₦33.00
₦38.89
+17.9%
17.7%₦45.96₦29.60n/a4
Feb ’25₦39.55
₦38.89
-1.7%
17.7%₦45.96₦29.60n/a4
Jan ’25₦31.50
₦38.89
+23.5%
17.7%₦45.96₦29.60n/a4
Dec ’24₦29.55
₦38.89
+31.6%
17.7%₦45.96₦29.60n/a4
Nov ’24₦27.20
₦39.22
+44.2%
13.2%₦45.96₦34.12n/a5
Oct ’24₦29.95
₦39.22
+30.9%
13.2%₦45.96₦34.12n/a5
Sep ’24₦29.75
₦39.22
+31.8%
13.2%₦45.96₦34.12n/a5
Aug ’24₦26.65
₦32.64
+22.5%
8.3%₦35.00₦28.11n/a5
Jul ’24₦29.50
₦32.64
+10.6%
8.3%₦35.00₦28.11n/a5
Jun ’24₦26.00
₦32.05
+23.3%
8.5%₦35.00₦28.11₦33.804
May ’24₦24.10
₦35.00
+45.2%
14.6%₦45.01₦30.97₦32.855
Apr ’24₦26.00
₦35.22
+35.5%
16.2%₦45.01₦30.97₦38.054
Mar ’24₦27.00
₦31.22
+15.6%
4.6%₦32.90₦29.00₦33.004
Feb ’24₦25.00
₦31.22
+24.9%
4.6%₦32.90₦29.00₦39.554
Jan ’24₦24.00
₦35.35
+47.3%
12.2%₦43.88₦32.00₦31.505
Dec ’23₦22.05
₦35.33
+60.2%
11.2%₦43.88₦32.00₦29.556
Nov ’23₦22.25
₦37.33
+67.8%
12.7%₦44.00₦32.90₦27.206
Oct ’23₦24.50
₦37.10
+51.4%
11.9%₦44.00₦32.90₦29.957
Sep ’23₦25.00
₦38.53
+54.1%
12.4%₦44.00₦32.90₦29.757
Aug ’23₦23.40
₦35.14
+50.2%
19.9%₦44.00₦22.20₦26.657
Jul ’23₦26.50
₦35.34
+33.4%
19.7%₦44.00₦22.20₦29.507
Jun ’23₦27.05
₦34.08
+26.0%
17.7%₦44.00₦22.20₦26.007

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


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