At ₦7 Per Share Here Is Why You Should Own UBA Shares.
As you well know by now, I like making the case for why you should own assets of different classes. It is my view that true financial security and wealth creation comes from owning assets whether they be stocks, bonds, a business, or a piece of real estate. Today I want to make a case for why you should own shares at United Bank for Africa (UBA) for just ₦7 per share today.
UBA is one of the top banks in the Nigerian banking industry, which is an industry that happens to be the best performing industry in terms of dividend, earnings, and revenue on the Nigerian Stock Exchange.
When you want to access the value of a stock the two things to consider are its qualitatives (non-numeric value) and its quantitaives (numeric value). For UBA its qualitative value includes a bank with a solid business model, firm brand value, competitive edge, and the fact that it is run by bright minds one of which includes its Chairman in the name of banker and businessman Tony Elumelu.
Quantitatively UBA is a firm that has provided an average dividend yield of 10% annually for the last 5 years and It has provided earnings in excess of ₦100 billion over that same period as well. When accessing UBA’s book value and comparing it to its market value, you find out that the stock is undervalued and selling for 1/3 of its true value. All this points to the fact that at ₦ 7,000 today you would be a proud owner of about 1000 shares of a company that is really valuable. Now is a time to buy and hold this valuable stock and one you should not miss out on.
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Warm Regards,
Frank Hodgins.
