STERLINGNG

Sterling Financial Holdings trades at ₦7.65, a 9% discount to the blended base fair value of ₦8.40 (P/B-anchored, 50% weight), supported by a 23.7% filing-derived ROE and Q2-2026 gross earnings growth of 31% YoY to ₦279.6bn. However, the committee score flags negative quality and momentum, our independent data source independent P/B of 0.96x sits materially below our model's 1.24x current trading multiple, and Q2 EPS dilution (77k vs 89k prior period) suggests share issuance is compressing per-share value creation. The risk/reward is modest rather than compelling, warranting a selective accumulate with tight position sizing pending clarity on dilution and capital structure.

Verdict published 2026-08-18 · fundamentals through Q2-2026 · reviewed as the data changes