Fifteen Nigerian companies are trading at deep discounts to their net assets, drawing attention from investors hoping to spot bargains — www.naijnaira.com reports.
According to Nairametrics, firms across banking, insurance, construction, and real estate now trade at an average price-to-book ratio of just 0.60.
The price-to-book ratio compares market value with net assets, and a figure below one suggests shares are priced cheaper than what the company actually owns.
Six major banks stand out in this group, with Zenith Bank, UBA, Access Holdings, FirstHoldCo, FCMB, and ETI all trading far below their asset values.
“These numbers point to undervaluation, not weakness,” analysts say, with Zenith alone growing profits by 35% annually while its stock still trades at only 0.65x book.
UBA and Access Holdings also show steady profit growth above 40%, while Ecobank’s 85% profit CAGR makes its 0.36x valuation look especially cheap.
Outside banking, however, the discounts look risky. Companies like Smart Products Nigeria and Aso Savings show poor profitability despite rising share prices.
The verdict: strong banks appear to be genuine bargains, while many non-banks trading at discounts remain value traps waiting to be avoided.
Article updated 4 days ago. Content is written and modified by multiple authors.
