GEREGU | Geregu Power Plc : Implied valuation note

    This report adopts a relative valuation methodology to estimate a 12- month Target Price (TP) for GEREGU following its recent listing on the stock exchange. In arriving at our TP, we used comparable power-generating companies across select emerging market economies as our peer universe. The asset base of these companies ranges from $132.7 million to $1.6 billion. This peer universe has grown revenue and PAT by an average 3-year CAGR of 16.0% and 9.9%, respectively. These performance numbers pale compared to GEREGU's 26.5% and 23.0%, respectively. This disparity in earnings growth could be explained by the age and growth phase of GEREGU (16 years vs the mean of 34 years for peers).


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    CardinalStone is a full service investment banking firm with a vision to build a world class investment banking firm of African origin; operating out of Lagos, Nigeria. The firm was incorporated in April 2008 and began operations in June 2008. CardinalStone is duly registered with the Securities & Exchange Commission in Nigeria to carry on business as an Issuing House, Fund Manager and Broker/Dealer The Firm's activities are carried out across five business units: Asset Management, Investment Banking, Private Equity, Securities Trading and the Business Support Group.
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