Access Corp (ACCESSCORP:LAG), the largest bank in terms of total assets, presents an intriguing case. With over N30 trillion in total assets and N2.4 trillion in net assets, it’s hard to ignore its significant footprint in the financial sector. However, its market valuation at N684 billion raises eyebrows. Let’s break it down:
Valuation Metrics:
- Price-to-Book Ratio (P/B): The P/B ratio compares a company’s market value (stock price) to its net asset value (book value). For Access Corp, the P/B ratio is approximately 0.27 (27% discount to net assets). This suggests that investors are paying significantly less for each unit of net assets.
- Earnings Per Share (EPS): Access Corp’s EPS stands at 19.59 NGN (trailing twelve months). This indicates the company’s profitability per outstanding share.
- Dividend Yield: The bank pays a high and reliable dividend of 10.85%, which could be attractive to income-seeking investors.
Undervaluation or Underperformance?:
Growth Strategy and M&A:
Conclusion:
Remember, investing involves risks, and thorough due diligence is essential. Always consult with a financial advisor before making investment decisions.
