BERGER

Berger Paints Nigeria is a high-quality industrial compounder delivering ROE of ~29–36% on a clean balance sheet (equity ₦5.4bn, negligible leverage implied by total assets of ₦9.7bn vs equity of ₦5.4bn), with EPS growing from ₦0.47 in FY2021 to ₦5.42 in FY2025 — a near-12x nominal uplift driven by naira pass-through pricing and genuine volume recovery. However, at a current price of ₦147.6 the stock trades at ~27x trailing P/E and ~7.9x P/B, which is materially above our blended fair-value estimate of ₦75.38 (base case), implying approximately 49% downside to intrinsic value even after crediting sector peer multiples. Quality is unambiguously positive; price is unambiguously stretched.

Verdict published 2026-10-29 · fundamentals through Q3-2026 · reviewed as the data changes