BERGER

Berger Paints Nigeria is a genuinely high-quality industrial franchise — FY2025 ROE of 29% (our independent cross-check suggests 36%), rising EPS trajectory from ₦0.47 in FY2021 to ₦5.42 in Q2-2026 LTM, and a clean balance sheet with equity of ₦5.4bn against total assets of ₦9.7bn — but the stock at ₦147.6 trades at a independently confirmed 24.7x P/E and 7.9x P/B, roughly double the blended fair value range of ₦59.84–₦83.94 derived from own-history and sector-peer multiples. The quality case is unambiguous; the valuation case is not — the stock is priced for perfection at a 49.8% premium to our base fair value of ₦74.04, leaving virtually no margin of safety at current levels.

Verdict published 2026-09-05 · fundamentals through Q2-2026 · reviewed as the data changes