Is It Worth Buying Stanbic IBTC Despite Higher Prices?

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6 thoughts on “Is It Worth Buying Stanbic IBTC Despite Higher Prices?

  • Hi Oge. Great work you do here. Plus your analysis of Stanbic is excellent. While it can be dangerous investing behaviour to keep “averaging down” on stocks, your growth, efficiency and valuation analysis is stellar on this one. 15-16% return in a whole year (considering the risk-return in this economy) may not be stellar though, considering that the dividend yield for this stock is not very impressive too. My opinion is that an individual investor should rather hold on till profit takers exit (at least 3 weeks after Mark down). But investors who really want to play the long game will find this stock a good mine over the next 3-5 years.

    Do Your Due Diligence (DYDD), please.

    👍 Oge!

  • Hi Tochukwu, you are very correct! Waiting for ex div price seems perfect. Stanbic IBTC, isn’t a great dividend stock, only good for short term players.

    Thanks!

  • My concern on Stanbic is the low dividend yield.

    • Stanbic IBTC is growth stock, the low yield isn’t impressive at all.

  • Been a keen reader of your posts since 2017. I feel stanbic is way overpriced at the moment and from your analysis of its Fair value, 19% discount rate is being very generous. Most times i use my investor rate of average return on invested capital for 5 years as a discount rate to cushion for debt especially. Great write up and do your due diligence.

    • Hi Adegbenga,

      I appreciate your comment and preferred discount rate.

      I use Warren Buffet approach to discounting future earnings which takes into account the risk free rate (10-year FGN bond yield) and equity premium.

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