Valuation Archives - Gifted Analysts

The Hershey Company: Unwrapping the Potentials and Digging into the Chocolate Numbers

By Adebowale AterePosted on July 12, 2023Posted in Business & FinanceTagged Chocolate, DCF, Hershey, Nestle, ValuationNo Comments

The Hershey Company is a leading American multinational chocolate manufacturer that also produces baked goods, beverages, and other products. Operating under 80 brands in 70 countries, Hershey’s is a global leader in chocolate, sugar confectionery, and chocolate related grocery products. The company prides itself on its values driven approach to snacking, offering moments of goodness through its more than 90 brands and products. Hershey’s values include togetherness, integrity, making a difference, and excellence.

Hershey’s offers a wide variety of flavours, sizes, and variations of its products. Popular items include Hershey’s Milk Chocolate Bar, Hershey’s Special Dark Mildly Sweet Chocolate Bar, Hershey’s Air Delight Chocolate Bar, Hershey’s Milk Chocolate with Almonds Bar, Hershey’s Cookies ‘ Creme Bar, Hershey’s Drops, and Hershey’s Miniatures. The company sells its products to a diverse range of customers through various channels, including its own retail stores and online. With a wide range of products catering to different income and age groups, Hershey’s target market is essentially everyone.

An Analysis of Apple Inc.’s Financial Performance and Growth Prospects

By Adebowale AterePosted on July 10, 2023Posted in Business & FinanceTagged Apple, DCF, Facebook, Google, iPhone, ValuationNo Comments

Apple is the largest technology company in the world in terms of revenue and market capitalization and is
among the Big Five American information technology companies, which also includes Alphabet (Google), Amazon, Meta (Facebook), and Microsoft. The Americas is Apple’s biggest regional market, encompassing both North and South America. Other significant markets include Europe (comprising European countries as well as India, the Middle East and Africa), Greater China (encompassing mainland China, Hong Kong, and Taiwan), Japan, and the Rest of Asia Pacific (including Australia and other Asian countries not included in the company’s other reportable segments).

FMN Plc Investment Pitch – GA Academy 3.0

By Oluwatobi SholankePosted on June 17, 2023Posted in Business & FinanceTagged Flourmill, GDP, Inflation, recommendation, Revenue, Stock, Stock pitch, ValuationNo Comments

This stock pitch was prepared by Basirat Adebiyi, Abbas Bashar, Oluwatobi Sholanke, and Chigbo Oguejiofor as part of their project during the recently concluded Gifted Analysts Academy 3.0

Flour Mills Nigeria Plc: Showcasing Unprecedented Progress in the Growth of Organic Sales and Profitability

By Adebowale AterePosted on June 7, 2023Posted in Business & FinanceTagged Agriculture, DCF, Flourmill, Food, Honeywell, Nigeria, Valuation1 Comment

With the Nigerian government’s
ongoing focus on promoting agricultural development through its policies and budgetary plans, Flour Mills Nigeria Plc can leverage this support to build a strong agribusiness that can meet domestic food demand, generate export revenue, and create jobs. How
effectively is the company taking
advantage of this opportunity?

Stock Pitch – Dangote Sugar Refinery Plc

By Solomon Sele AyebawanaemiPosted on December 15, 2022Posted in Business & FinanceTagged Dangote sugar, DCF, DDM, Opportunities, Risks, Stock pitch, ValuationNo Comments

We recommend a BUY on DANGSUGAR based on our target price of N26.31. This representing a potential 72.0% upside on the closing price of N15.30 as of 14th December, 2022.
Year-to-date (YTD), DANGSUGAR has dropped -10% compared to +13.54% and -5.4% for the NGX-ASI and the NGX-CONSUMER GOODS index respectively. Due to this, the stock is trading at its 52-week low of N15.30 per share, creating a value opportunity for investors.

UNITED CAPITAL PLC: 9 MONTHS-2022 PERFORMANCE REVIEW AND STOCK RECOMMENDATION

By Solomon Sele AyebawanaemiPosted on October 26, 2022Posted in Business & FinanceTagged CAGR, Comparative valuation, Financial Performance, Target Price, United Capital, ValuationNo Comments

United Capital Plc has seen steady growth in both top and bottom lines over the years, and we expect both to continue to grow at double digits over the next five years. The company’s Return on Equity (ROE) has averaged over 30% in the past 5 years. This is one of the highest among publicly listed financial service companies and highlights the company’s strong value creation for its shareholders. We recommend a buy for the stock based on our findings and the future prospects of the company. Our blended target price of N15.10 suggests a potential upside of 20.8% compared to the current share price of N12.50 (24th October, 2022). The target price was arrived at by using a weighted average of 65% for the DDM method and 35% for the comparable method of valuation.

The company also has the following market value ratios:

P/E ratio: 6.7X (FY-21 EPS: N1.88)
Forward P/E: 5.2X (FY-22 EPS: N2.41)
Dividend yield: 12% (last dividend reported: N1.50)
P/B ratio: 2.55X (Book value: N4.9)

Transcorp Hotels PLC; Proven resilience amidst strong economic headwinds.

By Jude NwaonuPosted on July 18, 2022Posted in Business & FinanceTagged Coronavirus, COVID, DCF, Hotel, Rent, Revenue, Transcorp, ValuationNo Comments

We arrived at a target price of N24.6 per share on Transcorp hotel PLC based on a mix of two valuations metrics- the DCF model with an intrinsic share value of N27, and the DDM with an intrinsic share value of N22. We attributed a weight of 60% and 40% to each methodology, respectively, to arrive at our target price.

How Resilient is NVIDIA in the Face of Today’s Downturn?

By Sheriffdeen AdeotiPosted on July 4, 2022Posted in Business & FinanceTagged DCF, EBITDA, NVIDIA, Stocks, US Fed, ValuationNo Comments

The global economy is off to a rough start in 2022, with the Russia-Ukraine conflict, China’s lockdown,
supply chain chaos, decades-high inflation, soaring oil prices, and increased global market uncertainty all
playing a role. This year has seen billions of dollars wiped off NVIDIA’s market capitalization, just like
other tech giants (down 48 percent YTD). Is NVIDIA well-equipped to weather the current bear market?

Is a NETFLIX Comeback on the Horizon?

By Sheriffdeen AdeotiPosted on June 25, 2022Posted in Business & FinanceTagged Comparative valuation, DCF, Inflation, Netflix, Subscribers, ValuationNo Comments

NETFLIX started the year on a rough note as the platform reportedly lost 200k subscribers in Q1-22, the first time in over a decade. The streaming giant is also expected to lose 2 million more subscribers in the second quarter of 2022. Can NETFLIX make a rebound from this trajectory? How will NETFLIX fare during the post-lockdown era?

BUACEMENT: A Dive into Company Performance and Financial Analysis

By Jude NwaonuPosted on May 7, 2022Posted in Business & FinanceTagged BUACEMENT, DANGCEM, DCF, DDM, Financial Performance, GDP, Nigeria, ValuationNo Comments

We issue a sell recommendation on BUA Cement PLC(BUACEMENT.NSE) Based on a target price of ₦58.6k representing a 13% downside on the closing price of ₦70.75 as of march 30th, 2022. Our valuation is based on a methodology mix of Discounted cash flow model (70%), Dividend discount model (10%) and Multiples valuation (20%).

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