SCOA
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
The derivation failed our plausibility check
The computed value landed outside the 0.4×–2.5× band that real price targets occupy. A result that far from the traded price means one of our inputs is wrong, not that the market is wrong by that much — so we publish nothing rather than clamp it into range.
A per-share input was repaired or refused
One of the per-share figures behind this valuation did not agree with the audited totals it should reconcile to, so it was recomputed from those totals or rejected outright.
What we would need
- A per-share input (earnings or book value) that reconciles to the latest audited totals.
- A per-share figure in the source data that reconciles to the reported totals.
Show what the engine computed
Rejected figure · ₦9.71 — floor — raw base ₦9.71 is 0.29x price. This figure is shown only to document what was refused; it is not an estimate and no upside is computed from it.
Method spread · 1.04× between the highest and lowest valuation leg.
Failed plausibility rail · Fair value hit our plausibility bounds: floor — raw base ₦9.71 is 0.29x price. The published base is the rail, not a derivation.
Figure corrected · confidence leans on our independent data snapshot, not on our own filings: our independent data snapshot as of 2026-08-09 corroborated (agrees with our filing-derived EPS); credited 6 because we hold 1 clean annual year(s) of our own
Input quality · confidence leans on our independent data snapshot, not on our own filings: our independent data snapshot as of 2026-08-09 corroborated (agrees with our filing-derived EPS); credited 6 because we hold 1 clean annual year(s) of our own
SCOA Nigeria Plc trades at approximately 44.9x trailing P/E and 6.55x P/B against a sector median of ~13x P/E and ~2x P/B, implying a substantial valuation premium that is unsupported by the company's modest profitability (net margin 6.6%, PAT ₦147.9m on ₦4.93bn revenue in H1-2026) and a retained earnings deficit of approximately ₦3.50bn. The company has shown incremental progress — equity growing from ₦2.45bn in FY2024 to ₦3.28bn in Q2-2026 and a narrowing cash burn — but chronic deeply negative operating cash flow (₦-1.70bn in H1-2026, ₦-8.69bn in FY2025) signals structural working capital impairment that fundamentally undermines the quality of reported earnings. Until cash generation normalises and the valuation multiple compresses toward sector norms, the risk-reward is materially unfavourable.
Verdict published 2026-08-12 · fundamentals through FY2025 · reviewed as the data changes
Verdict moderated to Watch — Avoid was refused
Fair value hit our plausibility bounds, so there is no defensible valuation behind an extreme call.
Source: NGX live market data · Investo intelligence. Educational only — not financial advice.