bovali:
Saw this financials but after my analysis my excitement was short lived:
https://doclib.ngxgroup.com/Financial_NewsDocs/42190_EUNISELL_INTERLINKED_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2024_FINANCIAL_STATEMENTS_SEPTEMBER_2024.pdf

Valuation of Eunisell Interlinked Plc: A Comprehensive Analysis

In this post, I will analyze the potential stock price of Eunisell Interlinked Plc using 10 different valuation methods. Each method provides a different perspective, offering a range of valuations depending on market conditions and financial performance.

1. Price-to-Earnings (P/E) Ratio

The P/E ratio compares the current share price to the company’s earnings per share (EPS). Using an EPS of ₦0.4228, I applied three different P/E multiples to arrive at the following price ranges:

• Worst Case (P/E = 3x): ₦1.27
• Base Case (P/E = 6x): ₦2.54
• Best Case (P/E = 9x): ₦3.80

2. Price-to-Book (P/B) Ratio

This method evaluates the stock based on the company’s Net Asset Value (NAV) per share of ₦1.25. Applying P/B multiples:

• Worst Case (P/B = 0.8x): ₦1.00
• Base Case (P/B = 1.2x): ₦1.50
• Best Case (P/B = 1.6x): ₦2.00

3. Discounted Cash Flow (DCF) Model

Using the EBITDA of ₦145.25 million and a WACC of 20%, the DCF provides a valuation of the company’s future cash flows. Here are the estimated share prices:

• Worst Case: ₦5.00
• Base Case: ₦10.00
• Best Case: ₦15.00

4. Dividend Discount Model (DDM)

Eunisell hasn’t paid dividends for over 22 years, so DDM is not applicable.

5. Asset-Based Valuation

This method evaluates the stock using the company’s total equity and net assets. With confirmed total equity of ₦295.87 million and 236.7 million shares outstanding, the asset-based valuation produces:

• Worst Case: ₦1.25
• Base Case: ₦1.50
• Best Case: ₦2.00

6. Earnings Growth Model

This method was skipped due to the lack of historical earnings data.

7. Price-to-Sales (P/S) Ratio

Using the revenue of ₦722.53 million and the number of shares outstanding:

• Worst Case: ₦1.00
• Base Case: ₦1.50
• Best Case: ₦2.00

8. Enterprise Value-to-EBITDA (EV/EBITDA)

With an enterprise value of ₦833.4 million and EBITDA of ₦145.25 million, the EV/EBITDA estimates are:

• Worst Case: ₦4.00
• Base Case: ₦8.00
• Best Case: ₦12.00

9. Relative Valuation (Comparables)

This method was skipped cause can’t find comparables. Maybe you guys can help?

10. Economic Value Added (EVA)

Using NOPAT of ₦100.071 million, WACC of 20%, and the company’s invested capital, the EVA model estimates:

• Worst Case: ₦4.00
• Base Case: ₦8.00
• Best Case: ₦12.00

Summary of Results:

• Worst Case Average: ₦2.06
• Base Case Average: ₦4.20
• Best Case Average: ₦6.48

chimex38:


The 6month rule is it Prior to Announcement by the company or Prior to AGM?

Or probably this your case is different since it originated from shareholders and not management?

Na NGx rule book go clarify.

GeeKudi:


Ok. It means the company can unilaterally determine the buy out price without a meeting and consent of the shareholders. What if they refuse to sell like the Oando situation?
Maybe someone with better understanding of the rules can enlighten better.

Yemy3m:
next week.
uba|oando|eterna are hot
Buy more Do. Not. Sell until news is out.

a bamk want to buy majority stake in a insurance. be alert

chimex38:


The 6month rule is it Prior to Announcement by the company or Prior to AGM?

Or probably this your case is different since it originated from shareholders and not management?

Na NGx rule book go clarify.

Streetinvestor2:
I don't understand the French. The average market price within 6 months and highest market price within 6 months can not be the same Which is used for the calculation

Harvestock01:
To succeed in the stocks business, one needs a giant size strainer to sieve the substance from the noise in the market 😀

bovali:


2. Misinterpretation of Company Motions

During an AGM, a company may propose a motion for voluntary delisting, but this is often just the first step. The actual delisting announcement may come later, once approvals from the stock exchange and regulatory bodies are secured. People might confuse the proposal made at the AGM with the formal announcement of delisting, leading them to mistakenly focus on the share price before the AGM, instead of the share price at the time of the delisting announcement.

4. Market Reactions Around AGMs

Share prices often experience volatility around AGMs due to speculation about potential announcements. Shareholders might focus on the price leading up to the AGM, thinking it reflects the company’s latest position. However, the rules clearly specify that it’s the average price over the last 6 months before the official delisting announcement, not before the AGM, that is used to determine the buyback price.


In summary, the confusion arises because the AGM is often seen as a turning point for major corporate decisions, but the share price before the AGM is not the relevant figure. instead, the average price over the last six months before the formal delisting announcement is the correct benchmark according to the NSE rules. .

GeeKudi:


Without any prophecy, from available public info, you can predict what would be in the anticipated results

*inresased revenue (raising crude production from 5000bpd to 50,000bpd no be moimoi)

*no dividend yet (would be over ambitious to expect dividend earlier than late next year)

chimex38:


Highest Price within the Last 6months before notice of EGM.✔️
It's likely going to be ₦70, no matter the push in price beyond that. Notice of EGM has been published. unless a change at at EGM itself.

1st image is Arbico Plc that delisted earlier this year.

2nd image is MRS that is about to delist.

https://nairametrics.com/2024/06/28/shareholders-approve-mrs-oil-nigeria-plcs-quest-to-delist-from-ngx/

SonofElElyonRet:


I am more interested in the insurance company, not the bank. Bro, give us the expo

Agbalowomeri:


So MRS too wan delete? NGX should start enforcing more stringent conditions

Omooloriredade:


Question - Is it correct to assume your broker trades on your behalf? Lost count of the number of times you have said " I told my broker to buy......"

Is there a reason why you don't do the buying and selling yourself? At least through a trading platform?

Harmless question o. Just wondering.

SonofElElyonRet:


My friend, its more convenient for me to use my broker. We discuss real time and she gives on the spot advice. Also I've known her for decades so I'm comfortable with her. If there's any quick opportunity she uses their funds and i reimburse same day or latest the next

chimex38:

Na so i see am Oo.
I agree with you.

Though MRS will trade in NASD-OTC

SonofElElyonRet:


My friend, its more convenient for me to use my broker. We discuss real time and she gives on the spot advice. Also I've known her for decades so I'm comfortable with her. If there's any quick opportunity she uses their funds and i reimburse same day or latest the next

megawealth01:
Nigeria legal system... I miss my days in UNILAG studying POL SCI

ice234:



Please how can I trade on NASD OTC market, can see some lovely stock there like 11 plc

ice234:



Please how can I trade on NASD OTC market, can see some lovely stock there like 11 plc

SonofElElyonRet:


My friend, its more convenient for me to use my broker. We discuss real time and she gives on the spot advice. Also I've known her for decades so I'm comfortable with her. If there's any quick opportunity she uses their funds and i reimburse same day or latest the next

megawealth01:
Nigeria Loses $15.9 Billion Annually To Illegal Mining, Sen Kalu Reveals

https://abntv.com.ng/news/nigeria-loses-15-9-billion-annually-to-illegal-mining-senator-kalu-reveals-video/

Mr Femi Otedola, yesterday, strengthened his hold as leading shareholder in First Bank of Nigeria, FBN, Holdings acquiring additional 9,193,339 units of shares valued at N183, 438,702.50 in different

megawealth01:


I hope you still kept the ELLAHLAKES jealously like I told you back then?

Have you kept some good volume of japaul?

chimex38:

I have no much knowledge on rules of trade there.

But the most i know is you need to open another NASD-OTC account with a licenced broker to trade if you want to.

Not all NGX stockbrokers are licence to trade on NASD-OTC.
but most are, especially the more popular traditional ones..

Also, some of their stocks are illiquid to trade due to low visibility..
Hence suits long term investors more than traders.

Most i know..

SonofElElyonRet:


Bro maybe you've noticed that I've been quiet a bit. Some evil people particularly that street investor chap here do me strong thing but i blame myself. I just recovered from the psychological trauma. Me wey talk say i no go sell my very plenty oando when the guy was trying to cause panic actually panic sold at N29 and on the same day it started to go back up. Another guy well respected also said here that Oando could crash to N10 simply because he didn't buy when cheap (sour grapeeism). I sold all even when my broker said to keep like half. It really affected me.. i sold all Japaul sef out of depression . But i don recover thank God. i have rebought Japaul even more than i had before. Also tripled my Ellah holdings.. as better people dey here na so yeye people dey..

p.s. enjoying the ellah ride. I rebought at giid price.. both ellah and Japaul will be big in the future

designking:


https://www.vanguardngr.com/2024/06/otedola-tightens-grip-on-first-bank-acquires-more-shares/amp/

SonofElElyonRet:


Bro maybe you've noticed that I've been quiet a bit. Some evil people particularly that street investor chap here do me strong thing but i blame myself. I just recovered from the psychological trauma. Me wey talk say i no go sell my very plenty oando when the guy was trying to cause panic actually panic sold at N29 and on the same day it started to go back up. Another guy well respected also said here that Oando could crash to N10 simply because he didn't buy when cheap (sour grapeeism). I sold all even when my broker said to keep like half. It really affected me.. i sold all Japaul sef out of depression . But i don recover thank God. i have rebought Japaul even more than i had before. Also tripled my Ellah holdings.. as better people dey here na so yeye people dey..

p.s. enjoying the ellah ride. I rebought at giid price.. both ellah and Japaul will be big in the future

faoogoke:

I understand you fully my brother. Because some people did not take a position in a rising stock they speak bad about the stock, make those holding the stock to dump. This is not right.
I have learnt to ignore them and hold on to my stance.
I am happy you recovered.

nosa2:


Investing is not a team sport. We are all playing against each other