MTN - Where to from here? Profit after tax in Nigeria is 190Bn Naira.. That's around 16billion ZAR.. Based on last years profit contributions Nigeria is approx. 37% of the company.. Last years profit after tax was R37billion, we know that Nigeria full year this year is R16billion, lets say the rest of the group equals Nigerias profit that will take full year profit after tax to R32bn.(This is highly prudent given last year Nigeria was 37% and not 50%). The market cap is currently around R220bn, so based on that we get a PE of 6.85?? Lets add R70bn to the market cap for the fine, that still gives us a PE of 9.. I think this is majorly oversold and the market overshot it to the downside. Fair value for me would be around R150 per share.
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