VERITASKAP

Veritas Kapital Assurance trades at ₦1.14, a steep 58% discount to our blended base fair value of ₦2.58, anchored 50% on P/B (BVPS ₦2.73 × 0.65–1.00x blended multiple) and 40% on P/E (EPS ₦0.58 × 3.75–5.72x), implying 126% upside to base. However, the Q2-2026 interim period shows a loss after tax of ₦1.87 billion against FY2025 reported EPS of ₦0.58, signalling a sharp deterioration in near-term profitability that materially qualifies the valuation discount. The investment case is therefore conditional: the discount is genuine and the FY2025 franchise quality was real (ROE 21.3%), but investors must weigh whether the Q2-2026 loss is transient or structural before sizing a position.

Verdict published 2026-10-26 · fundamentals through Q2-2026 · reviewed as the data changes