Mkombozi Commercial Bank Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: MKCB (TZS560) is trading below our estimate of fair value (TZS1651.42)

Significantly Below Fair Value: MKCB is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MKCB. This is calculated by dividing MKCB's market cap by their current earnings.
What is MKCB's PE Ratio?
PE Ratio	1.2x
Earnings	TSh10.85b
Market Cap	TSh13.19b

MKCB 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MKCB 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	7.6x
MBP Maendeleo Bank	3.8x	n/a	TSh8.9b
VERF Versailles Financial	14.9x	n/a	US$6.6m
IEC Inner East Community Finance	6.7x	n/a	AU$3.7m
KUZB Kuznetsky Bank	5.1x	n/a	₽388.2m
MKCB Mkombozi Commercial Bank	1.2x	n/a	TSh13.2b

Price-To-Earnings vs Peers: MKCB is good value based on its Price-To-Earnings Ratio (1.2x) compared to the peer average (8.4x).

Price to Earnings Ratio vs Industry

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

6 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	5.1x	10.1%
MKCB Mkombozi Commercial Bank	1.2x	n/a	US$4.97m

6 Companies		Estimated Growth	Market Cap
Industry Avg.	5.1x	10.1%
MKCB Mkombozi Commercial Bank	1.2x	n/a	US$4.97m

No more companies

Price-To-Earnings vs Industry: MKCB is good value based on its Price-To-Earnings Ratio (1.2x) compared to the African Banks industry average (5.1x).

Price to Earnings Ratio vs Fair Ratio

What is MKCB'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.

MKCB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	1.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MKCB's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.