ROYALEX
Investo's verdict, shared with you
No fair value published
The derivation ran and was refused by our own plausibility checks. We publish no number rather than a plausible-looking one.
Why · 2 checks
Our valuation methods disagree
The earnings-based and book-based readings of this company differ by more than 2.5×. That spread is real information, but averaging it would manufacture a number no method actually produced.
Our own committee reads this differently
Our rules-based factor scorecard scores this company's Value factor the opposite way to our fair value. Both cannot be right, so neither is presented as settled.
What we would need
- Earnings and book value drawn from the same set of accounts, so the two legs can be reconciled.
- Agreement between the filing-derived valuation and the vendor ratios the committee scores.
Show what the engine computed
Method spread · 4.43× between the highest and lowest valuation leg.
Methods disagree · The valuation legs disagree by 4.43x (Blended P/E band ₦2.17 vs Blended P/B band ₦1.5 vs Justified P/B ₦0.49). No point estimate is defensible until the inputs are reconciled.
Committee disagrees · Committee scores Value NEGATIVE (weak) but our base fair value implies +33.3% upside.
Royal Exchange Plc trades at ₦1.17, a 25% discount to the blended P/B-weighted base fair value of ₦1.56, but the headline upside is materially undermined by a rules-based committee score that rates every investable factor—value, quality, momentum, and risk—as negative or insufficient, a independently reported ROE of -7.71% that contradicts the filing-derived 11.8%, and a pending ₦2.7bn equity raise at ₦1.30 that implies near-term dilution. The investment case is not yet constructive: the data conflicts are too wide, the quality signals too weak, and the capital structure too uncertain to justify accumulation at this stage. We rate the stock 'watch' with low conviction pending reconciliation of the ROE discrepancy, completion of the EGM capital raise, and extraction of audited balance sheet figures from the H1 2026 filings.
Verdict published 2026-08-18 · fundamentals through Q2-2026 · reviewed as the data changes
Source: NGX live market data · Investo intelligence. Educational only — not financial advice.